The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $195 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 5 Depreciation expense 70 Depreciation in the tax return 110 The applicable tax rate is 25%. There are no other temporary or permanent differences. Franklin Freightways should have recorded ($ in millions):
The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $195 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 5 Depreciation expense 70 Depreciation in the tax return 110 The applicable tax rate is 25%. There are no other temporary or permanent differences. Franklin Freightways should have recorded ($ in millions):
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):
Pretax accounting income: $195
Pretax accounting income included:
Overweight fines (not deductible for tax purposes) 5
Depreciation in the tax return 110
The applicable tax rate is 25%. There are no other temporary or permanent differences.
Franklin Freightways should have recorded ($ in millions):
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