Burcham Corporation reported pre-tax book income of $500,000. Tax depreciation exceeded book depreciation by $400,000....
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Burcham Corporation reported pre-tax book income of $500,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the Company received $310,000 of tax-exempt municipal bond interest. The Companys prior year tax return showed taxable income of $50,000. Determine the Companys book equivalent of taxable income and use this number to compute the Companys total income tax provision or benefit, assuming a tax rate of 21%.
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