2.Sagehen Enterprises reports pretax financial income of $80,000 for 2012. The following cause taxable income to be different from pretax financial income: Depreciation on the tax return is greater
2.Sagehen Enterprises reports pretax financial income of $80,000 for 2012. The following cause taxable income to be different from pretax financial income:
◦Depreciation on the tax return is greater than depreciation on the income statement by $15,000..
◦Rent collected on the tax return is $25,000 greater than rent earned on the income statement..
◦Fines reported on the income statement were $10,000..
.The current tax rate is 30%. There are no deferred taxes at the beginning of 2012.
Compute taxable income and income tax payable for 2012. Which of the differences are temporary, and which are permanent?
