Future temporary difference for firm related to depreciation

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Reference no: EM13775135

At the end of 20x4, the only future temporary difference for a firm related to depreciation. For assets owned as of 12/31/x4, future depreciation (after 20x4) was projected to be $40,000 for taxes and $60,000 for the books. During 20x5, the firm recognized $12,000 of warranty expenses for financial reporting purposes but performed no warranty claim service. The firm did not purchase or dispose of any depreciable assets during 20x5. Depreciation recognized in 20x5 was $15,000 for taxes and $20,000 for the books, The income tax is 30%. Taxable income for 20x5 is $100,00. Compute income tax expenses for 2015?

Reference no: EM13775135

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