Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account. Given information: Cost of telephone system is $50,000. Useful life is 5 years. Income before tax and depreciation is $200,000. Tax rate is 40%.

Question

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Answer 1

Question

Chapter 17, Problem 17.3P

a.

To determine

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.

b.

To determine

Income tax expense and income tax payable for 2013 and 2014.

c.

To determine

Balance in deferred tax account at December 31, 2014.

d.

To determine

Firm’s reported net income for 2013 and 2014.

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Answer 2

Question

Chapter 17, Problem 17.3P

a.

To determine

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.

b.

To determine

Income tax expense and income tax payable for 2013 and 2014.

c.

To determine

Balance in deferred tax account at December 31, 2014.

d.

To determine

Firm’s reported net income for 2013 and 2014.

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Answer 3

Question

Chapter 17, Problem 17.3P

a.

To determine

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.

b.

To determine

Income tax expense and income tax payable for 2013 and 2014.

c.

To determine

Balance in deferred tax account at December 31, 2014.

d.

To determine

Firm’s reported net income for 2013 and 2014.

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Answer 4

Question

Chapter 17, Problem 17.3P

a.

To determine

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.

b.

To determine

Income tax expense and income tax payable for 2013 and 2014.

c.

To determine

Balance in deferred tax account at December 31, 2014.

d.

To determine

Firm’s reported net income for 2013 and 2014.

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Answer 5

Chapter 17, Problem 17.3P

a.

To determine

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.

b.

To determine

Income tax expense and income tax payable for 2013 and 2014.

c.

To determine

Balance in deferred tax account at December 31, 2014.

d.

To determine

Firm’s reported net income for 2013 and 2014.

Answer 6

Chapter 17, Problem 17.3P

a.

To determine

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.

Answer 7

Chapter 17, Problem 17.3P

a.

To determine

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.

Answer 8

b.

To determine

Income tax expense and income tax payable for 2013 and 2014.

Answer 9

b.

To determine

Income tax expense and income tax payable for 2013 and 2014.

Answer 10

c.

To determine

Balance in deferred tax account at December 31, 2014.

Answer 11

c.

To determine

Balance in deferred tax account at December 31, 2014.

Answer 12

d.

To determine

Firm’s reported net income for 2013 and 2014.

Answer 13

d.

To determine

Firm’s reported net income for 2013 and 2014.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 17 - Prob. 17.1Q Ch. 17 - When will income tax expense and income taxes...Ch. 17 - Will permanent differences cause the effective tax...Ch. 17 - When do permanent differences arise?Ch. 17 - How are deferred tax assets and deferred tax...Ch. 17 - Prob. 17.6Q Ch. 17 - Prob. 17.7Q Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - How does a firm determine the need for a valuation...

Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account. Given information: Cost of telephone system is $50,000. Useful life is 5 years. Income before tax and depreciation is $200,000. Tax rate is 40%.

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account. Given information: Cost of telephone system is $50,000. Useful life is 5 years. Income before tax and depreciation is $200,000. Tax rate is 40%.

Income tax expense and income tax payable for 2013 and 2014.

Balance in deferred tax account at December 31, 2014.

Firm’s reported net income for 2013 and 2014.

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Chapter 17 Solutions

To prepare: Schedule to compare book and tax depreciation and show the deferred tax provision and cumulative balance of deferred tax account.

Given information:

Cost of telephone system is $50,000.

Useful life is 5 years.

Income before tax and depreciation is $200,000.

Tax rate is 40%.