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The following information relates to Franklin Freightways for its first year of operations (data in
millions of dollars):
The applicable tax rate is 25%. There are no other temporary or permanent differences.
Franklin's taxable income ($ in millions) is:
Multiple Choice
$49.
$122.
$181.
$191.Pretax accounting income:$230Pretax accounting income included:Overweight fines (not
deductible for tax purposes)10Depreciation expense73Depreciation in the tax return using
MACRS:122

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The following information relates to Franklin Freightways for its .pdf

  • 1. The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): The applicable tax rate is 25%. There are no other temporary or permanent differences. Franklin's taxable income ($ in millions) is: Multiple Choice $49. $122. $181. $191.Pretax accounting income:$230Pretax accounting income included:Overweight fines (not deductible for tax purposes)10Depreciation expense73Depreciation in the tax return using MACRS:122