1.Southlawn Inc.'s taxable income is computed as
follows:
Book income before tax
$
2,405,600
Net permanent differences
(512,000
)
Net temporary differences
(189,000
)
Taxable income
$
1,704,600
Using a 34% rate, compute Southlawn's tax expense per books and tax
payable.
a.Tax expense per books $643,824;
tax payable $579,564.
b.Tax expense per books $579,564;
tax payable $643,824.
c.Tax expense per books $817,904;
tax payable $579,564.
d.None of the choices are
correct.
2.Monro Inc. uses the accrual method of accounting. Here...