667 1Z.2 Freeman Co. has $200,000 in installment sales revenue in 2kA, its first year of operations For tax purposes, the income is recognized when received (assume straight-line over 4 years). Freeman also has $120,000 in credit sales in 2kA and $150,000 in 2kB, but collections are $100,000 and $120,000 in 2kA and 2kB. A S1 vale over 5 years for financial accounting purposes, but $50,000-$30,000- $20,000 for tax purposes in 2kA, B, and C. There are no other timing differences. 00,000 asset is being depreciated s-l,0 salvage Assume a .4 tax rate in 2kA. In 2kB, a law changes the rate to 3 for 2kB and.25 for 2kC and thereafter. Income before all timing differences was $150,000 in 2kA and $200,000 in 2kB. a. Compute tax expense entries for 2kA and 2kB. [A: 180, B: 695] b. What would Freeman show on their Balance Sheet as their 2kA net current dta/1? [28 dtl]) c. What would Freeman show on their Balance Sheet as their 2kB net noncurrent dta/1? [22.5 dil] 667 1Z.2 Freeman Co. has $200,000 in installment sales revenue in 2kA, its first year of operations For tax purposes, the income is recognized when received (assume straight-line over 4 years). Freeman also has $120,000 in credit sales in 2kA and $150,000 in 2kB, but collections are $100,000 and $120,000 in 2kA and 2kB. A S1 vale over 5 years for financial accounting purposes, but $50,000-$30,000- $20,000 for tax purposes in 2kA, B, and C. There are no other timing differences. 00,000 asset is being depreciated s-l,0 salvage Assume a .4 tax rate in 2kA. In 2kB, a law changes the rate to 3 for 2kB and.25 for 2kC and thereafter. Income before all timing differences was $150,000 in 2kA and $200,000 in 2kB. a. Compute tax expense entries for 2kA and 2kB. [A: 180, B: 695] b. What would Freeman show on their Balance Sheet as their 2kA net current dta/1? [28 dtl]) c. What would Freeman show on their Balance Sheet as their 2kB net noncurrent dta/1? [22.5 dil]