Question 1:

A. Alpha Company has total revenue of $ 450,000; expenses other than depreciation of $ 200,000; depreciation expense for tax purposes of $ 125,000; and depreciation expense of $180,000 for reporting purposes. The tax rate is 35%. Calculate net income for reporting purposes and tax purposes and also calculate the deferred tax liability.

B. Discuss the difference between the straight-line method of depreciation and the accelerated method. Why do companies use different depreciation methods for tax reporting and financial reporting?

Question 2:

Using the following information analyzes the accounts receivable and the allowance for doubtful accounts for Beta Company and write Summary for analysis:

2021 2020

Sales $6,700 $7,500

Accounts receivable, net 202 320

Allowance for doubtful accounts 3 12

Question 1: A. Alpha Company has total revenue of $ 450,000; expenses other than depreciation of $ 200,000; depreciation expense for tax purposes of $ 125,000; and depreciation expense of $180,000 for reporting purposes. The tax rate is 35%. Calculate net income for reporting purposes and tax purposes and also calculate the deferred tax liability. B. Discuss the difference between the straight-line method of depreciation and the accelerated method. Why do companies use different depreciation methods for tax reporting and financial reporting? Question 2: Using the following information analyzes the accounts receivable and the allowance for doubtful accounts for Beta Company and write Summary for analysis: 2021 2020 Sales $6,700 $7,500 Accounts receivable, net 202 320 Allowance for doubtful accounts 3 12