Converting Book Income to Taxable Income. The following income
and expense accounts appeared in the accounting records of Rocket
Corporation, an accrual basis taxpayer, for the current calendar
year. Book Income These are all Credits Net Sales $3,230,000
Dividends 10,000 (1) Interest 18,000 (2) Gain on Sale of stock
9,000 (3) Key-person life insurance proceeds 100,000 These are all
debits Cost of goods sold $2,000,000 Salaries and wages $500,000
Bad Debts 13,000 (4) Payroll Taxes 62,000 Interest Expense 12,000
(5)...