Assignment 15-15.doc

Assignment15-15Requirement1Thisisatemporarydifferencebecause(a)earedifferentforeachyear,and(b) 20x4 20x5 20x6 bookvalue $90,000 $60,000 $30,000 $0Taxbasis(UCC) 72,000 36,000 12,000 e20x4through20x7: 20x4 20x5 20x6 e(excludingdepreciation) $60,000 $80,000 $70,000 $70,000Depreciation 30,000 30,000 30,000 30,ebeforetax 30,000 50,000 40,000 40,000Addbackdepreciation 30,000 30,000 30,000 30,000Deductdepreciationfortaxpurposes(given):20x4 $(48,000)20x5 $(36,000)20x6 $(24,000)20x7 _____ _____ _____ $(12,000)e 12,000 44,000 46,000 58,000Taxrate 30% 30% 40% 40%etaxpayable $3,600 $13,200 $18,400 $23,etaxexpense:etaxpayable $3,600 $13,200 $18,400 $23,etax 5,400 1,800 0 (7,200)etaxexpense $9,000 $15,000 $18,400 $16,000 Tax Accounting Temporary Deferred Opening Adjustment Basis Basis Difference Tax Balance20x4Capitalasset $72,000 $90,000 $(18,000) $(5,400) $0 $(5,4