Compute what amount claim for cca on corporation tax return

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Reference no: EM132973209

Kookie Corporation, Inc., partial income statement for its first year of operations is as follows:

Income before income taxes $1,750,000

Income tax expense: Current $ 483,000

Deferred  42,000 (525,000)

Net income $1,225,000

Kookie uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $ 700,000. Except for depreciation, there were no other differences between accounting income and taxable income. Assume a 30% tax rate for the year.

Problem 1: What amount was claimed for CCA on the corporation's tax return for the year?

a. $560,000.

b. $665,000

c. $140,000.

d. $700,000.

e. $840,000.

Reference no: EM132973209

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