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For calendar year 2021, Oriole Corp. reported depreciation of $1510000 in its income statement. On its 2021 income tax return, Oriole reported depreciation of $2229000.
For calendar year 2021, Oriole Corp. reported depreciation of \$1510000 in its income statement. On its 2021 income tax return, Oriole reported depreciation of $2229000. Oriole's income statement also included $273000 accrued warranty expense that will be deducted for tax purposes when paid. Oriole's enacted tax rates are 20% for 2021 and 2022, and 15% for 2023 and 2024 . The depreciation difference and warranty expense will reverse over the next three years as follows: These were Oriole's only temporary differences. In Oriole's 2021 income statement, the deferred portion of its provision for income taxes should be $89200. $148800. $87100. $79000
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