What would the amount be as of december

Assignment Help Accounting Basics
Reference no: EM132576779

ABC Inc. purchased machinery and equipment in the amount of $125,000 on January 1, 2019. ABC will amortize this asset straight line over 18 years, with no salvage value. For tax purposes these assets are to be depreciated using a capital cost allowance rate of 15% each year of the original value (i.e. $125,000). ABC pays tax at a rate of 35%.(reminder of half-net year rule).

Required:

Question a) What is the amount of the temporary difference between straight line depreciation and capital cost allowance on December 31, 2019?

Question b) What would the amount be as of December 31, 2019 for any Deferred Tax Asset / Liability? Be sure to specify whether it is an asset or liability.

Question c) What would the amount be as of December 31, 2020 for any Deferred Tax Asset / Liability? Be sure to specify whether it is an asset or liability.

Reference no: EM132576779

Questions Cloud

Identify the characteristics of your chosen ethical theory : In your first post in this discussion, you will identify and apply one ethical theory of your choosing to a current problem in business, also of your choosing.
Why related party transactions are considered to of interest : Explain whether or not the above transaction is a related party transaction in accordance with the requirements of AASB 124 Related Party Disclosures.
Provide you with the greatest diversification benefit : Assume you hold the market portfolio. Which of the following stocks would provide you with the greatest diversification benefit?
In the modern business world : In the modern business world, which is more highly valued: being smart or being attractive?
What would the amount be as of december : What would the amount be as of December 31, 2020 for any Deferred Tax Asset / Liability? Be sure to specify whether it is an asset or liability.
Firms should stop doing business with customers : Discuss the notion that firms should stop doing business with customers who constantly generate losses versus the notion that the customer is always right
Prepare journal entry that calgary would prepare on january : Prepare journal entries that Calgary would prepare on December 31, 2019. Prepare journal entries that Calgary would prepare on January 1, 2019
Suggest possible solutions to improve efficiency of circle : Suggest FIVE (5) possible solutions (using the concept of e-business, cloud computing or shared services) to improve the efficiency of Circle College
Leadership styles impact the ethical practices : How can leaders and their leadership styles impact the ethical practices within an organization?

Reviews

Write a Review

Accounting Basics Questions & Answers

  If the firm desires to net 450 per unit in profit over

taurus tools has developed a new kitchenutensil. the firm has conducted significant market research and estimated the

  Compute the total budgeted machine hours

Cost-allocation base for overhead application Machine hours. Compute the total budgeted machine hours, total applied overhead cost

  Decides to offer two types of dinner cruise

Decides to offer two types of dinner cruise

  Compute the amount of realized gross profit to be

swift corp. a capital goods manufacturing business that started on january 4 2012 and operates on a calendar-year basis

  Differential operating profit

Assuming no changes are expected for the other food items, the differential operating profit for 2006 is:

  What are the tax implications of these two alternatives

Ricardo is a professional football player. What are the tax implications of these two alternatives

  At the beginning of 2011 robotics inc acquired a

at the beginning of 2011 robotics inc. acquired a manufacturing facility for 12 million. 9 million of the purchase

  Acme fireworks uses a traditional overhead allocation based

acme fireworks uses a traditional overhead allocation based on direct labor hours. for the current year overhead is

  Overdue debt for medical books

Mary Houser has $1,200 overdue debt for medical books and supplies at Ken's Bookstore. She has only $400 in her checking account and doesn't want her parents to know about the debt. Ken's tells her that she may settle the account in one of two way..

  Determine how many orders should be placed each year

Determine Calculate the E.O.Q, for the commodity. Determine how many orders should be placed each year. Find the re-order point.

  How many units did smith sell

Smith Corp has a selling price of $15, variable costs of $10 per unit, and fixed costs of $25,000. Contribution margin is $60,000. How many units did Smith sell

  Discuss the accounting principle or concept

Discuss the accounting principle or concept that is most relevant to this situation. Give any journal entry required

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd