Calculate taxable income and income tax payable

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Question - The following information is available for ET Global Inc. for 2019:

(1) Pretax financial income was $750,000.

(2) Tax depreciation was $320,000 more than book depreciation. This will reverse with equal payments of $80,000 over the next 4 years.

(3) $175,000 of rent was received in advance and recorded as Unearned Rent Revenue on the books. The rent will be earned in 2020.

(4) The tax rate for the current and future years is 30%.

Required - How to calculate Taxable income, income tax payable and income tax expense for year 2019.

Reference no: EM132534035

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