On July 1, 2018, Pitman Co. purchased an asset for $500,000 with an estimated useful life of 5 years and an estimated salvage value of $50,000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method (MACRS) is being used. The half year convention is assumed under both methods. Pitman Co.s tax rate is 30% for 2018 and all future years.

24 On July 1, 2018, Pitman Co. purchased an asset for $500,000 with an estimated useful life of 5 years and an estimated salvage value of $50,000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method (MACRS) is being used. The half year convention is assumed under both methods. Pitman Co.'s tax rate is 30% for 2018 and all future years. What is the 2018 Depreciation for: Tax Financial Reporting Return 25 Based on the facts of #24 above, Assume income, prior to considering depreciation is $150,000, record the provision for taxes for 2018: Account Debit Credit