Business, 24.04.2020 18:58 10027126

Carla Vista Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income $2725000
Estimated litigation expense 3725000
Extra depreciation for taxes (5730000)
Taxable income $720000

The estimated litigation expense of $3725000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1910000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is:

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Carla Vista Co. at the end of 2020, its first year of operations, prepared a reconciliation between...

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