Southern atlantic plans to use straight-line depreciation

Assignment Help Financial Accounting

Reference no: EM131295714

Southern Atlantic Distributors began operations in January 2013 and purchased a delivery truck for $100,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful for financial reporting purposes. For tax purposes, the deduction is 45% of cost in 2013, 30% in 2014, and 25% in 2015. Pretax accounting income for 2013 was $460,000, which includes interest revenue of $55,000 from municipal bonds. The enacted tax rate is 40%.

Assuming no differences between accounting income and taxable income other than those described above:

1. Complete the following table given below and prepare the journal entry to record income taxes in 2013.

Reference no: EM131295714

Questions Cloud

Maturity date assuming it is honored : Daw Company’s December 31 year-end unadjusted trial balance shows a $24,000 balance in Notes Receivable. This balance is from one 7% note dated December 1, with a period of 45 days. Assume Daw Company does not prepare reversing entries. Prepare journ..

Calculate the equivalent units of production : The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 28,500 units in inventory, 70% complete as to mater..

Depreciation on the income statement : Last year Art charged $1,504,160 Depreciation on the Income Statement of Andrews. If early this year Art sold all its depreicable assets for their book value, the effect on Andrews's financial statements would be (all other items remaining equal):

What is the law of diminishing marginal productivity : What is the law of diminishing marginal productivity? How does the law of diminishing marginal productivity affect the cost of productions? Can you provide an example from your workplace?

Southern atlantic plans to use straight-line depreciation : Southern Atlantic Distributors began operations in January 2013 and purchased a delivery truck for $100,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful for financial reporting purposes. Complete the fo..

Were any of the examples surprising : Research symbolism in cinema.Compile a brief list of examples of symbolism in the cinema.Were any of the examples surprising?Did they add to your enjoyment of the film, if it was a film you have previously viewed?

Record the income tax. : A company reports pretax accounting income of $10 million, but because of a single temporary difference, taxable income is only $8 million. No temporary differences existed at the beginning of the year, and the tax rate is 35%. Prepare the appropriat..

What is the covariance between hp and the market : (a) What is the covariance between HP and the market? (b) What is HP's beta? (c) What is the expected return of HP? (d) What percent of HP's total risk (variance) is idiosyncratic?

What decisions would you make in terms of staging : Write a pitch for a movie that discusses the story and one person or object that is symbolic. Explain the symbolic significance of your person or object. In your pitch, summarize the setting, main plot, at least two main characters, and the theme.

User Account

All Pages