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state whether you agree or disagree with the statement of the case and any calculations provide in it. You must state and explain clearly whether
state whether you agree or disagree with the statement of the case and any calculations provide in it. You must state and explain clearly whether you agree or not and you must support your answer with calculations if possible. (taxation subject)
D. For calendar year 2017, Company GB reported depreciation of $600,000 in its income statement. On its 2017 income tax return, the company reported depreciation of $900,000. The company's income statement also included $112,500 accrued warranty expense that will be deducted for tax purposes when paid. The company's enacted tax rates are 30% for 2017 and 2018, and 24% for 2019 and 2020. The depreciation difference and warranty expense will reverse over the next three years as follows: Depreciation Difference Warranty Expense 2018 $120,000 $22,500 105,000 2019 37,500 2020 |_75,000 52,500 $300,000 $112,500 The company's accountant reported net deferred taxes of $107,550 in 2017 income statementStep by Step Solution
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