Question
Deferred Tax Calculations (Appendix) Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows: 2015 $276,000 2016 316,000 2017 370,000 When calculating income,
Deferred Tax Calculations (Appendix)
Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows:
2015 | $276,000 |
2016 | 316,000 |
2017 | 370,000 |
When calculating income, Wyhowski deducted depreciation on plant equipment. The equipment was purchased January 1, 2015, at a cost of $114,000. The equipment is expected to last three years and have a(n) $9,000 salvage value. Wyhowski uses straight-line depreciation for book purposes. For tax purposes, depreciation on the equipment is $66,000 in 2015, $26,000 in 2016, and $13,000 in 2017. Wyhowski's tax rate is 35%.
Required:
3. What is the balance in the Deferred Income Tax account at the end of 2015, 2016, and 2017? If your answer is zero, enter "0". If required, round all calculations to the nearest dollar.
Year | Balance | Debit or Credit |
2015 | $fill in the blank 7 | Credit |
2016 | $fill in the blank 9 | Credit |
2017 | 0 | No balance |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started