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For calendar year 2018, Sol Corp. reported depreciation of $500,000 in its income statement. On its 2018 income tax return, Sol reported depreciation of $900,000.
For calendar year 2018, Sol Corp. reported depreciation of $500,000 in its income statement. On its 2018 income tax return, Sol reported depreciation of $900,000. Sol's income statement also included $220,000 accrued warranty expense that will be deducted for tax purposes when paid. Sol's enacted tax rates are 35% for 2018 and 2019, and 30% for 2020 and 2021. The depreciation difference and warranty expense will reverse over the next three years as follows: Depreciation difference Warranty expense 2019 160,000 50,000 2020 140,000 80,000 2021 100,000 90,000 400,000 220,000 These were Sol's only temporary differences. What should be the deferred portion of its provision for income taxes should be in the King's 2018 income statement? [8 points) Please type in the account name for the deferred portion of the provision for A Please type in the 50,000 2019 160,000 2020 140,000 80,000 2021 90.000 100.000 400,000 220,000 These were Sol's only temporary differences. What should be the deferred portion of its provision for income taxes should be in the King's 2018 income statement? [8 points) Please type in the account name for the deferred portion of the provision for income taxes here: A Please type in the amount for the deferred portion of the provision for income taxes here: Pape 13 of 17
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