please answer all questions below Refer to your course text book In chapter 16. Complete the assignment below which is
Posted: Wed Jul 06, 2022 6:23 am
please answer all questions below
Refer to your course text book In chapter 16. Complete theassignment below which is a variation of the illusration problem16-2 (Intermediate Accounting by J. David Spiceland). Applythe 4-step process to account for the temporary difference relatedto depreciation expense. Show your table(s) asillustrated.
Expense Reported on the Tax Return before the IncomeStatement (Expense Related DTL)
Corey Associates purchased $75 thousand of equipment in earlyJanuary of 2021. It is estimated that the equipment has auseful life of three years, so it depreciates the equipmentstraight line, with $25 thousand of depreciation expense 2021–2023.However, tax rules allow Corey to take the entire $75 thousanddeduction for the cost of the equipment on its 2021 tax return.Corey has a 25% tax rate and pretax accounting income of $130thousand in each of those year.
Show the working as illustrated for each of years 2021 to2023. After each of the break down illustrated,
Refer to your course text book In chapter 16. Complete theassignment below which is a variation of the illusration problem16-2 (Intermediate Accounting by J. David Spiceland). Applythe 4-step process to account for the temporary difference relatedto depreciation expense. Show your table(s) asillustrated.
Expense Reported on the Tax Return before the IncomeStatement (Expense Related DTL)
Corey Associates purchased $75 thousand of equipment in earlyJanuary of 2021. It is estimated that the equipment has auseful life of three years, so it depreciates the equipmentstraight line, with $25 thousand of depreciation expense 2021–2023.However, tax rules allow Corey to take the entire $75 thousanddeduction for the cost of the equipment on its 2021 tax return.Corey has a 25% tax rate and pretax accounting income of $130thousand in each of those year.
Show the working as illustrated for each of years 2021 to2023. After each of the break down illustrated,