For the current year ($ in millions), Centipede Corp. had $80 In pretax accounting Income. This Included warranty expense of $7 and $20 in depreclatlon expense. Two million of warranty costs were incurred, and depreciation deductions in the tax return amounted to $35. In the absence of other temporary or permanent differences, what was Centipede's taxable Income? Multiple Choice $70 million. $74 million. $64 million. $50 million.
For the current year ($ in millions), Centipede Corp. had $80 In pretax accounting Income. This Included warranty expense of $7 and $20 in depreclatlon expense. Two million of warranty costs were incurred, and depreciation deductions in the tax return amounted to $35. In the absence of other temporary or permanent differences, what was Centipede's taxable Income? Multiple Choice $70 million. $74 million. $64 million. $50 million.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 16DQ
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For the current year ($ in millions), Centipede Corp. had $80 in pretax accounting income. This included warranty expense of $7 and $20 in depreciation
expense. Two million of warranty costs were incurred, and depreclation deductions in the tax return amounted to $35. In the absence of other temporary
or permanent differences, what was Centipede's taxable income?
Multiple Choice
$70 million.
$74 million.
$64 million.
$50 million.
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