Question - Sagehen Enterprises reports pretax financial income of $80,000 for 2012. The following cause taxable income to be different from pretax financial income:
Depreciation on the tax return is greater than depreciation on the income statement by $15,000..
Rent collected on the tax return is $25,000 greater than rent earned on the income statement..
Fines reported on the income statement were $10,000..
The current tax rate is 30%. There are no deferred taxes at the beginning of 2012.
Compute taxable income and income tax payable for 2012. Which of the differences are temporary, and which are permanent?