Wassim Zhani Corporate Taxation 1 26

1-26 The reconciliation of book income to taxable income is as follows: Net book income $300,000 Add: Actual Federal income tax $ 80,000 Overaccrual of FIT* 10,000 Insurance premiums 6,000 Net capital loss 4,000 100,000 Less: Life insurance proceeds... More

1-26 The reconciliation of book income to taxable income is as follows: Net book income $300,000 Add: Actual Federal income tax $ 80,000 Overaccrual of FIT* 10,000 Insurance premiums 6,000 Net capital loss 4,000 100,000 Less: Life insurance proceeds $120,000 Excess depreciation 36,000 (156,000) Taxable income $ 244,000 Less