y stamp taxes ntage taxes cal business taxes paid in 2019 due for 2020
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 72P
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Transcribed Image Text:The following data were provided by a Domestic Corporation for 2020:
Taxes and licenses
40,000
Documentary stamp taxes
2,000
Other percentage taxes
120,000
Refund of local business taxes paid in 2019
10,000
Income tax due for 202O
300,000
Refund of income tax for 2019
25,000
Interest income:
From trade notes receivable
100,000
From peso bank deposits
120,000
From bank deposits abroad
20,000
Transcribed Image Text:Interest expense on bank loan
150,000
Tax assessment on underpayment of percentage taxes
75,000
Surcharges on tax assessments
25,000
Interest expense on tax assessments
12,500
Determine the amount of deductible tax expense for 2020. Please show your solution, thanks!
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