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Pr. 1 0-115tdlultiple temporary differences. The following information is available for the rst three years of operations for Cooper Company: 1. m Taxable Inco me
Pr. 1 0-115tdlultiple temporary differences. The following information is available for the rst three years of operations for Cooper Company: 1. m Taxable Inco me 201 T $500,000 2010 3?5,000 2010 400,000 {in January 2, 201?, heavy equipment costing $000,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 201? 2010 2010 2020 Total $204,000 $300,000 $120,000 $50,000 $300,000 {in January 2, 2010, $300,000 was collected in advance for rental of a building for a three-year period. The entire $360,000 was reported as taxable income in 2010, but $240,000 of the $000,000 was reported as unearned revenue at December 31, 2010 for book purposes. 4. The enacted tax rates are 40% for all years
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