Exam 16: Corporate Income Tax

During 2013, MJB has pre-tax accounting income of $8,400.There were no permanent differences.MJB's only temporary difference for 2013 was rent revenue collected in advance of $2,400.None of this amount is recognized for book purposes.MJB's taxable income for 2013 would be:

Under the deferral approach, deferred taxes on the balance sheet are valued at the tax rate in that will be in effect when the temporary differences reverse.