Determine the temporary book-tax difference for the asset

Assignment Help Financial Management
Reference no: EM132322119

Question

AAyres services acquired an asset for $88 million in 2018. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset' s cost is depreciated by MACRS.

The enacted tax rate is 40%. Amounts for pretax accounting income, depreciation, and taxable income in 2018, 2019, 2020, and 2021 are as follows:

Pretax aacct. Income. $350. $370. $385. $420

Dep. On the inc stmt. 22.0. 22.0. 22.0. 22.0

Dep on the tax rtrn. (27.0) (35.0) (17.0) (9.0)

Determine (a) the temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account.

Reference no: EM132322119

Questions Cloud

List the possible identities of this bacterium : A. Interpret these test results B. List the possible identities of this bacterium
What evidence is there to support : What evidence is there to support of or refuting the following statement: Humans consume microbes every day with little health risk.
Calculate the amount of bond discount or premium : On June 1, 2019 Adelphi Corporation issued $370,000 of 6%, 5-year bonds. The bonds which were issued at 101, pay interest on January 1 and June 1.
Describe the life cycle of chlamydia : Describe the life cycle of Chlamydia, and explain how it plays a direct role in the pathogen's ability to cause pelvic inflammatory disease
Determine the temporary book-tax difference for the asset : Determine (a) the temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account.
Accurate for chlamydia screening in males : Explain why microscopic analysis of a urine specimen is more accurate for Chlamydia screening in males than in females.
Infectious disease process : Build a flowchart to represent each step in an infectious disease process.
Prepare the adjusting journal entry that on-time truckers : On July 31, a physical count of supplies revealed that there was $2,200 on hand. Prepare the adjusting journal entry that On-Time Truckers should make on July.
What disease is my patient suffering from : The doctor asks what has he eaten so far today. So far he has only eaten a bowl of cereal. What disease is my patient suffering from?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd