Bon, inny 1. (15 points) The table below presents selected financial statement data for three companies: Company 1 Company 2 Company 3 Depreciable assets at cost: Beginning of year $1,081 $4,589 $1,641 End of year $1,499 $4,199 $1,788 Accumulated depreciation: Beginning of year $838 $2,702 $1,168 End of year $896 $2.962 $1,249 Net income $37 $254 $59 Depreciation expense $87 $368 $108 Deferred tax liability relating to depreciable assets: Beginning of year $15 $276 $85 End of year $8 $242 $73 Income tax rate 35% 35% 35% Depreciation method for financial Straight-line Straight-line Straight-line reporting Depreciation method for tax Accelerated Accelerated Accelerated reporting a. Compute the average total depreciable life of assets in use for each firm to the nearest tent a year 1. Company 1 2. Company 2 3. Company 3 b. Compute the average age to date of depreciable assets to the nearest tenth of a year. 1. Company 1 2. Company 2 3. Company 3 c Compute the amount of depreciation expense recognized for tax purposes for each firm for year using the amount of deferred taxes liability related to depreciation timing differences. 1. Company 1 2. Company 2 3. Company 3 d. Compute the amount of net income for the year for each firm assuming that depreciation expense for financial reporting equals the amount computed in Requirement for tax repo 1. Company 1 2. Company 2 3. Company 3 e. Compute the amount each company would report for property, plant, and equipment(net) the end of the year if it had used accelerated (tax reporting) depreciation instead of straigh depreciation. 1. Company 1 2 Company 2 3. Company 3 Bon, inny 1. (15 points) The table below presents selected financial statement data for three companies: Company 1 Company 2 Company 3 Depreciable assets at cost: Beginning of year $1,081 $4,589 $1,641 End of year $1,499 $4,199 $1,788 Accumulated depreciation: Beginning of year $838 $2,702 $1,168 End of year $896 $2.962 $1,249 Net income $37 $254 $59 Depreciation expense $87 $368 $108 Deferred tax liability relating to depreciable assets: Beginning of year $15 $276 $85 End of year $8 $242 $73 Income tax rate 35% 35% 35% Depreciation method for financial Straight-line Straight-line Straight-line reporting Depreciation method for tax Accelerated Accelerated Accelerated reporting a. Compute the average total depreciable life of assets in use for each firm to the nearest tent a year 1. Company 1 2. Company 2 3. Company 3 b. Compute the average age to date of depreciable assets to the nearest tenth of a year. 1. Company 1 2. Company 2 3. Company 3 c Compute the amount of depreciation expense recognized for tax purposes for each firm for year using the amount of deferred taxes liability related to depreciation timing differences. 1. Company 1 2. Company 2 3. Company 3 d. Compute the amount of net income for the year for each firm assuming that depreciation expense for financial reporting equals the amount computed in Requirement for tax repo 1. Company 1 2. Company 2 3. Company 3 e. Compute the amount each company would report for property, plant, and equipment(net) the end of the year if it had used accelerated (tax reporting) depreciation instead of straigh depreciation. 1. Company 1 2 Company 2 3. Company 3