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Rubio, Inc., an accrual basis C corporation, reports the following amounts for the tax year. The applicable income tax rate is 30%. Compute Rubio’s taxable income.
Book income, including the items below ………… $80,000
Increase in book allowance for anticipated warranty costs …. 5,000
Interest income from City of Westerville bonds …….. 10,000
Bribes paid to Federal inspectors …………… 17,000
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