Franklin taxable income

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Reference no: EM13144097

The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):

Pretax accounting income: $300
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 6
Depreciation expense 64
Depreciation in the tax return using MACRS: 112

The applicable tax rate is 37%. There are no other temporary or permanent differences.

Franklin's taxable income is:

a) $258.

b) $252.

c) $112.

d) $48.

Reference no: EM13144097

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