ACC $302-$ Deferred Taxes$-$ Activity $4$

Complete this activity at home and turn it in next class period.

Assume no additional temporary differences occur and that each year following $204$ pretax

accounting income is $$12,000.$ Schedule the tax consequences and record them for $205-207.$

Extra Informtation:

$7/1/$x$1-$ Purchased depreciable asset

$0$ Cost

$$30,000$

a Ignore Salvage Value

Useful Life

$6$ years

o Tax life

$4$ years

o Straight$-$line depreciation $-$ book & tax

$0$ Pretax Al

$$10,000$

o Tax Rate

$40\%20$x$1$

$35\%$ after $20$x$3$