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Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $15,000 - Southern Atlantic uses straight-line depreciation over a three-year expected
Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $15,000 - Southern Atlantic uses straight-line depreciation over a three-year expected useful life for financial reporting purposes. The truck has no residual value after three years. - For tax purposes, the deduction is 60% of cost in 2021,20% in 2022 , and 20% in 2023. - The enacted tax rate is 30%. 2. This is an expense-related (DTA or DTL?) (1 points) 3. Indirect Method for Year 2021 (4 points) Step 1: Tax payable = Step 2: DTA/DTL ending balance in 2021= Step 3: Knowing that DTADTL had a beginning balance of and an ending balance of (from step 2) in 2021, we can conclude that a(n) (increase or decrease) of s DTADTL is needed Step 4: Calculate Income tax exp as the plug. Record the journal entry
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