For the year ended December 31,2015, Maple Corp.'s book income, before federal income tax, was $100,000. Included in this $100,000 were the following:
Provision for state income tax: $1,000
Interest earned on US Treasury bonds: $6,000
Interest expense on bank loan to purchase US Treasury Bonds: $2,000
Maple's taxable income for 2015 was
a. $96,000
b. $97,000
c. $100,000
d. $101,000
Answer: C
Tax
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