Compute taxable income and income taxes payable

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Reference no: EM13138397

The Ambrosia Corporation's lead accountant shows the following info:

On Jan 1, 2012, Ambrosia purchased a bottling machine for $800000

A) Straight-line basis depreciation for 5 years for tax purposes
B) Half year convention for 8 years for financial reporting (See Appendix 11A.)
C) Tax- exempt municipal bonds yielded interest of $150000 in 2013.
D) Pretax financial income is $2300000 in 2012 and $2400000 in 2013.
E) The company recognized an extraordinary gain of $150000 in 2013
(which is fully taxable).
F) Taxable income is expected in future years with an expected tax rate of 35%.

Required:

1) Compute taxable income and income taxes payable for 2013.

Reference no: EM13138397

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