Jones company reported pretax book income of $400,000. included in the computation were favorable temporary differences of $50,000, unfavorable temporary difference of $20,000, and favorale permanent differences of $40,000.
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Clayton, inc. purchased a van on january 1, 2016, for $850,000. estimated life of the van was five years, and its estimated residual value was $91,000. clayton uses the straight-line method of depreciation.
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