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Clear with simple steps thank you. PARTI: ANSWER BOTH PROBLEMS. (26 POINTS EACH OR 52 TOTAL POINTS). 1. Brock Corp.'s 2013 income statement had pretax
Clear with simple steps thank you. PARTI: ANSWER BOTH PROBLEMS. (26 POINTS EACH OR 52 TOTAL POINTS). 1. Brock Corp.'s 2013 income statement had pretax financial income of $250,000 in its first year of operations. Brock uses an accelerated cost recovery method on its tax return and straight-line depreciation for financial reporting. The differences between the book and tax deductions for depreciation over the five-year life of the assets acquired in 2013, and the enacted tax rates for 2013 to 2017 are as follows: 2013 2014 2015 2016 2017 Book Over (Unden)Tax $(50,000) (65,000) (15,000) 60,000 70,000 Tax Rates 35% 30% 30% 30% 30% There are no other temporary differences. The following journal entry was required to support the above data (DTL is net of tax rate changes): Dr Cr Income Tax Expense 85,000 Income Tax Payable DTL 70,000 15,000 Required: (a) Create a schedule/chart which depicts the generation/reversal of the annual timing differences. (13 points) (b) Create a T-account for the deferred tax liability to support the calculation of the J/E shown above. (13 points)
Clear with simple steps thank you.
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