Elephant Inc. had pre-tax accounting income of $1,500,000 for 2024, its first year of operations....
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Accounting
Elephant Inc. had pre-tax accounting income of $1,500,000 for 2024, its first year of operations. The enacted tax rate is 20%. The following are included in Elephants pre-tax accounting income:
Interest income from municipal bonds $120,000 Accrued warranty costs, estimated to be paid in 2025 260,000 Installment sales profit, will be taxed in 2025 130,000 Prepaid rent expense, will be used in 2025 60,000 What is Elephants taxable income for 2024?
a. $1,450,000
b. $1,570,000
c. $1,710,000
d. $1,190,000
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