Question
Asked Jan 10, 2020
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At the end of the year, Falabella Co. has pretax financial
income of $550,000. Included in the $550,000 is $70,000
interest income on municipal bonds, $25,000 fine for
dumping hazardous waste, and depreciation of $60,000.
Depreciation for tax purposes is $45,000. Compute income
taxes payable, assuming the tax rate is 30% for all periods.

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