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Chapter 21 - Corporate Earnings and Capital Transactions
Chapter 21
Corporate Earnings and Capital Transactions
1. A corporation may report net income for federal income tax purposes at an amount
different from the amount reported for financial accounting purposes.
2. Deferred income taxes arise because the taxable income of a corporation can differ from
the net income reported on its financial statements.
Chapter 21 - Corporate Earnings and Capital Transactions
Short Answer Questions
58. After all revenue and expense accounts, other than Income Tax Expense, have been
extended to the Income Statement section of the worksheet of Tyler Corporation, the net
income is determined to be $50,000. Using the following corporate income tax rates, compute
the corporation's federal income taxes payable. (Assume that the firm's taxable income is the
same as its income for financial accounting purposes.)
