Early in the year 2023 a company purchased a machine at a cost of $27,000. At...

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Early in the year 2023 a company purchased a machine at a cost of $27,000. At the time of purchase, the machine was estimated to have a useful life of 9 years, with no salvage value expected at the end of that time. The company elected to use the straight-line (SL) method of depreciation for reporting purposes. Assume a full year's depreciation was taken in the year 2023 (the year of acquisition). For income tax purposes, the company is required to use the appropriate depreciation rate specified in the Modified Accelerated Cost Recovery System. Assume this rate is 20% (i.e., 20% of the cost of the machine is depreciated for income tax purposes in the year of acquisition). There were no permanent differences between income before taxes (pretax accounting income) and taxable income. The only temporary difference resulted from the use of the straight-line method of depreciation for financial reporting and accelerated depreciation for income tax purposes. Assuming an income tax rate of 40 percent and income before depreciation (for both book and tax purposes) of $60,000 in the year 2023, indicate whether the following statements are "True" or "False" by circling your answers below (each answer is worth 2 points): A) T F B) T F C) D) T F T F E) TF Taxable income for the year 2023 is $54,600. Income taxes payable for the year 2023 are $22,800. Net income for the year 2023 is $34,200. Deferred income taxes (reported on the liability side of the balance sheet) for the year 2023 are $960. The income tax expense (reported on the income statement) for the year 2023 is $21,840. Early in the year 2023 a company purchased a machine at a cost of $27,000. At the time of purchase, the machine was estimated to have a useful life of 9 years, with no salvage value expected at the end of that time. The company elected to use the straight-line (SL) method of depreciation for reporting purposes. Assume a full year's depreciation was taken in the year 2023 (the year of acquisition). For income tax purposes, the company is required to use the appropriate depreciation rate specified in the Modified Accelerated Cost Recovery System. Assume this rate is 20% (i.e., 20% of the cost of the machine is depreciated for income tax purposes in the year of acquisition). There were no permanent differences between income before taxes (pretax accounting income) and taxable income. The only temporary difference resulted from the use of the straight-line method of depreciation for financial reporting and accelerated depreciation for income tax purposes. Assuming an income tax rate of 40 percent and income before depreciation (for both book and tax purposes) of $60,000 in the year 2023, indicate whether the following statements are "True" or "False" by circling your answers below (each answer is worth 2 points): A) T F B) T F C) D) T F T F E) TF Taxable income for the year 2023 is $54,600. Income taxes payable for the year 2023 are $22,800. Net income for the year 2023 is $34,200. Deferred income taxes (reported on the liability side of the balance sheet) for the year 2023 are $960. The income tax expense (reported on the income statement) for the year 2023 is $21,840.

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