Purple Rose Corporation reported book income of $600,000. Book depreciation exceeded tax depreciation by $10,000 and the

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answerhappygod
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Purple Rose Corporation reported book income of $600,000. Book depreciation exceeded tax depreciation by $10,000 and the

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Purple Rose Corporation reported book income of $600,000. Bookdepreciation exceeded tax depreciation by $10,000 and the reservefor bad debt was decreased by $5,000. In addition, the companyreceived $10,000 of tax-exempt municipal bond interest income andincurred $12,000 in nondeductible meals and entertainment expenseswhich are included in book income . The prior year tax returnshowed taxable income of $ 250,000 .
PLease show calculation and formulas
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