Carla Vista Company reports pretax financial income of $75,900 for 2025. The following items cause taxable income to be different
than pretax financial income.
1.
Depreciation on the tax return is greater than depreciation on the income statement by $15,200.
2.
Rent collected on the tax return is greater than rent recognized on the income statement by $22,100.
3.
Fines for pollution appear as an expense of $12,000 on the income statement.
Carla Vista's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred
taxes at the beginning of 2025.
(a)
Your answer is incorrect.
Compute taxable income and income taxes payable for 2025.
Taxable income
$
57000
Income taxes payable
$
17100
