Taxable Income €500,000 330,000 400,000 1. Year 2018 2019 2020 2. On January 2, 2018, heavy equipment costing €600,000 was purchased. The equipment had a life of 5 years and no residual value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2020 €90,000 2018 €198,000 2019 €270,000 2021 €42,000 Total €600,000 3. On January 2, 2019, €240,000 was collected in advance for rental of a building for a three- year period. The entire €240,000 was reported as taxable income in 2019, but €160,000 of the €240,000 was reported as unearned revenue at December 31, 2019 for book purposes. 4. The enacted tax rates are 40% for all years.
Taxable Income €500,000 330,000 400,000 1. Year 2018 2019 2020 2. On January 2, 2018, heavy equipment costing €600,000 was purchased. The equipment had a life of 5 years and no residual value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2020 €90,000 2018 €198,000 2019 €270,000 2021 €42,000 Total €600,000 3. On January 2, 2019, €240,000 was collected in advance for rental of a building for a three- year period. The entire €240,000 was reported as taxable income in 2019, but €160,000 of the €240,000 was reported as unearned revenue at December 31, 2019 for book purposes. 4. The enacted tax rates are 40% for all years.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.2P
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The following information is available for the first three years of operations for Swift Company:
(file attached)
Requirements :
1. Prepare a schedule comparing
2. Determine the
3. Prepare the
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