What is illini depreciation expense on the tool

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Reference no: EM132702200

Problem 1: Which of the following usually results in an increase in a deferred tax asset?

Multiple Choice

Option 1: Installment sales for which taxable income recognized when cash is collected.

Option 2: Unrealized loss from recording inventory impairments.

Option 3: None of these answer choices are correct.

Option 4: Unrealized gain from recording investments at fair value.

Problem 2: Illini switched from the sum-of-the-years-digits depreciation method to straight-line depreciation in 2018. The change affects a tool purchased at the beginning of 2016 at a cost of $79,200. The tool has an estimated life of five years and an estimated residual value of $3,960. What is Illini's depreciation expense on the tool in 2018?

Multiple Choice

Option 1: $20,064.

Option 2: $10,032.

Option 3: $21,120.

Option 4: $15,048.

Reference no: EM132702200

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