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At the beginning of 2 0 1 9 , its first year of operations, Cooke Company purchased an asset for $ 1 0 0 ,
At the beginning of its first year of operations, Cooke Company purchased an asset for $ This asset has an year economic life with no residual value, and it is being depreciated by the straightline method for financial reporting purposes. For tax purposes, however, the asset is being depreciated using the MACRS year life method.difference at the end of each year. Schedule InstructionsPrepare a schedule that computes for each year, through a the ending deferred tax liability and b the change in the deferred tax liability. Schedule Instructions COOKE COMPANY Change in Deferred Tax Liability through difference at the end of each year. Schedule Instructions COOKE COMPANY Depreciation & Tax Differences through During Cooke reported pretax financial income of $ and taxable income of $ The depreciation temporary difference caused the difference between the two income amounts. The tax rate in was and no change in the tax rate had been enacted for future years. Required: Prepare a schedule that shows for each year, through a MACRS depreciation, b straightline depreciation, c the annual depreciation temporary difference, and d the accumulated temporary difference at the end of each year. Prepare a schedule that computes for each year, through a the ending deferred tax liability and b the change in the deferred tax liability. Prepare Cookes income tax journal entry at the end of Next Level Explain what happens to the balance of the deferred tax liability at the end of through difference at the end of each year. Schedule InstructionsPrepare a schedule that computes for each year, through a the ending deferred tax liability and b the change in the deferred tax liability. Schedule Instructions COOKE COMPANY Change in Deferred Tax Liability through Prepare Cooke's income tax journal entry on December General Journal Instructions PAGE GENERAL JOURNAL tableDATE,ACCOUNT TITLE,POST. REF.,DEBIT,CREDITDec. Income Tax Expense,,Deferred Tax Liability,,Income Taxes Payable,,
At the beginning of its first year of operations, Cooke Company purchased an asset for $ This asset has an year economic life with no residual value, and it is being depreciated by the straightline method for financial reporting purposes. For tax purposes, however, the asset is being depreciated using the MACRS year life method.difference at the end of each year.
Schedule InstructionsPrepare a schedule that computes for each year, through a the ending deferred tax liability and b the change in the deferred tax liability.
Schedule Instructions
COOKE COMPANY
Change in Deferred Tax Liability
through
difference at the end of each year.
Schedule Instructions
COOKE COMPANY
Depreciation & Tax Differences
through
During Cooke reported pretax financial income of $ and taxable income of $ The depreciation temporary difference caused the difference between the two income amounts. The tax rate in was and no change in the tax rate had been enacted for future years.
Required:
Prepare a schedule that shows for each year, through a MACRS depreciation, b straightline depreciation, c the annual depreciation temporary difference, and d the accumulated temporary difference at the end of each year.
Prepare a schedule that computes for each year, through a the ending deferred tax liability and b the change in the deferred tax liability.
Prepare Cookes income tax journal entry at the end of
Next Level Explain what happens to the balance of the deferred tax liability at the end of through
difference at the end of each year.
Schedule InstructionsPrepare a schedule that computes for each year, through a the ending deferred tax liability and b the change in the deferred tax liability.
Schedule Instructions
COOKE COMPANY
Change in Deferred Tax Liability
through Prepare Cooke's income tax journal entry on December
General Journal Instructions
PAGE
GENERAL JOURNAL
tableDATE,ACCOUNT TITLE,POST. REF.,DEBIT,CREDITDec. Income Tax Expense,,Deferred Tax Liability,,Income Taxes Payable,,
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