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Cant find correct answers on chegg. Need all parts done...especially parts b and c Temporary Differences, Deferred Tax Liabilities, Change in Tax Rates. Kimm-Mills Incorporated
Cant find correct answers on chegg. Need all parts done...especially parts b and c
Temporary Differences, Deferred Tax Liabilities, Change in Tax Rates. Kimm-Mills Incorporated (KMI) acquired a piece of equipment at a total cost of $5,400,000. KMI uses the straight-line method of depreciation for financial reporting purposes and an accelerated method for tax purposes. The asset has a 6-year life for book purposes and for tax purposes. There is no estimated scrap value. KMI is subject to a 40% tax rate. We present the income and depreciation summary for both tax and GAAP. Required " a. Determine the balance of the deferred tax account at the end of each year. b. Prepare the journal entries to record the tax provision for each year. c. Prepare the journal entry to record the effect of a 35\% income tax rate that is enacted into law effective as of the beginning of Year 4
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