acc423 the following information is available for remmers corporation for 2012 491586

P19-1(a) Three Differences, No Beginning Deferred Taxes, Multiple Rates

The following information is available for Remmers Corporation for 2012.

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $131,200. This difference will reverse in equal amounts of $32,800 over the years 2013-2016.

2. Interest received on municipal bonds was $11,600.

3. Rent collected in advance on January 1, 2012, totaled $62,700 for a 3-year period. Of this amount, $41,800 was reported as unearned at December 31, 2012 for book purposes.

4. The tax rates are 40% for 2012 and 35% for 2013 and subsequent years.

5. Income taxes of $322,200 are due per the tax return for 2012.

6. No deferred taxes existed at the beginning of 2012.

Instructions:

a. Compute the taxable income for 2012.