Question
A company purchase an asset wiht 5- year depreciable life for 75,000 with no expected salvage value. The company uses straight line depreciation for financial
A company purchase an asset wiht 5- year depreciable life for 75,000 with no expected salvage value.
The company uses straight line depreciation for financial statement and uses double-declining for tax accounting. Assume a tax rate of 34%
What is the value of the company's deferred tax account at the end of the second year?
Correct Answer: 6120
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CPA Excel Auditing And Attestation
Authors: Robert A. Prentice
1st Edition
0977165876, 978-0977165872
