Deferred income tax liability for temporary difference

Assignment Help Accounting Basics

Reference no: EM13148114

On January 1, 2011, Gore, Inc. purchased a machine for $720,000 which will be depreciated $72,000 per year for financial statement reporting purposes. For income tax reporting, Gore elected to expense $80,000 and to use straight-line depreciation which will allow a cost recovery deduction of $64,000 for 2011. Assume a present and future enacted income tax rate of 30%. What amount should be added to Gore's deferred income tax liability for this temporary difference at December 31, 2011?

Reference no: EM13148114

Questions Cloud

How does radiation cause biological harm to bacteria : Based on their respective oxygen requirements, in which regions of the thioglycollate tubes do you expect to see growth of Microccocus luteus, Proteus vulgaris, and Clostridium perfringens?

Probability that average time spent per customer is in range : A random sample of 36 customers is selected. What is the probability that the average time spent per customer is between 2.9 and 3.2 minutes?

What would the concentration of lead be : There are 2.2 mg of lead in exactly 500 g of a water sample. What would the concentration of lead be in parts per million? Round to the nearest tenth. Don't forget the units

Determine temperature of gas inside and outside of sunspot : determine the temprature of the gas inside and outside of the sunspot

Deferred income tax liability for temporary difference : Assume a present and future enacted income tax rate of 30%. What amount should be added to Gore's deferred income tax liability for this temporary difference at December 31, 2011?

Probability-type two error accepting false null hypothesis : Suppose that the actual mean value in the population is , what is the probability of a Type II error (incorrectly accepting a false null hypothesis)?

Calculate the molecular mass of a solute : calculate the molecular mass of a solute with 8.02 grams of solute in 861 grams of water lower the freezing point to -.430 degree Celsius

Analyze a market environment with tacit collusion : Analyze a market environment with tacit collusion, including deterrents from entry.2. Evaluate the profitability of entering the market.3. Examine how the time horizon affects the profitability of entering the market.

How many genes are likely to be directly involved : How many genes are likely to be directly involved in determining the variation in the texture of dandelion petals?

User Account

All Pages