Ch. 16 in-class exercises
Throughout the problems, assume corporations are calendar year tax period, accrual method
taxpayers. As usual, do not round when doing intermediate steps in the problem, but round the
final answer to the nearest dollar.
Assume the following businesses operate as corporations. For the year requested, determine
the amount of book-tax difference, whether they are favorable or unfavorable, and whether
they are permanent or temporary.
The Tube is a cable
company. In 2017, the
company had $50,000 in
fines and penalties expense.
Quick Print Pro is working
hard to open its doors to
customers on January 1,
2018. In the meantime, they
incurred $50,000 of start-up
costs in 2017 for wages,
utilities, and rent in total for
all 12 months.