Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2021, Gore, Inc. purchased a machine for $2250000 which will be depreciated $225000 per year for financial statement reporting purposes. For

 

On January 1, 2021, Gore, Inc. purchased a machine for $2250000 which will be depreciated $225000 per year for financial statement reporting purposes. For income tax reporting, Gore elected to expense $250000 and to use straight-line depreciation which will allow a cost recovery deduction of $200000 for 2021. Assume a present and future enacted income tax rate of 20%. What amount should be added to Gore's deferred income tax liability for this temporary difference at December 31, 2021? $90000 $50000 $45000 $40000

Step by Step Solution

3.39 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

Total exp as per financial reporting system 225... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

10th Canadian Edition, Volume 1

978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736

More Books

Students also viewed these Accounting questions