Berkshire Hathaway purchased its Apple shares at about $20 billion. At the end of 2017, the market
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Berkshire Hathaway purchased its Apple shares at about $20 billion. At the end of 2017, the market value of Apple shares was about $28 billion. Under the new accounting rule for passive equity investments, how would Berkshire Hathaway account for the temporary difference between tax and financial reporting profitability assuming that unrealized gains are not taxable and that all of the appreciation in Apple's stock occurred in the fiscal year 2017?
Please show the temporary difference between tax and financial reporting separately and please provide the journal entries for both reporting.
Related Book For
South Western Federal Taxation Individual Income Taxes 2018
ISBN: 9781337385893
41st edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen
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