On january 1 2012 equipment costing 1344000 is purchased it

Reference no: EM13568981

The following information has been obtained for the Gocker Corporation.

1. Prior to 2012, taxable income and pretax financial income were identical.

2. Pretax financial income is $1,707,900 in 2012 and $1,401,100 in 2013.

3. On January 1, 2012, equipment costing $1,344,000 is purchased. It is to be depreciated on a straightline basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.)

4. Interest of $61,700 was earned on tax-exempt municipal obligations in 2013.

5. Included in 2013 pretax financial income is an extraordinary gain of $206,400, which is fully taxable.

6. The tax rate is 36% for all periods.

7. Taxable income is expected in all future years.

Compute taxable income and income taxes payable for 2013.

Taxable income		$
Income taxes payable		$

Reference no: EM13568981

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