Woody Corp had taxable income of 8000 in the current year Th

Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000, while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income, Woody\'s pretax accounting income was

Solution

taxable income of $8,000 + depreciation 3000 - depreciation reported in the income statement 1000 = 10000 is the pretax accounting income