Question: I need to do a reconciliation between the book and the income tax adjustments. I have a question about tax depreciation. Tax depreciation was $350,000

I need to do a reconciliation between the book and the income tax adjustments. I have a question about tax depreciation.

Tax depreciation was $350,000 before any cost recovery associated with depreciable fixed assets purchased in 2020

Recovery Period Placed in Service Date Original Basis 5-year MACRS property (cars, computers)May 17, 2020 $110,000 7-year MACRS property (furniture and fixtures)July 9, 2020 $730,000

My Solution

110000 x 20%= 22000
730000 x14.29%=104317
350000+22000+104317=416317 tax depreciation vs 278500 book depreciation = 197817 favorable book adjustment

Could you please explain what is wrong with my answer.

Thank you

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Please help us with the following questions about auditing internal control. a) Based on the background information, identify and explain two key internal control weaknesses where control activities...

Answer book included GRADE 12 ACCOUNTING COPYRIGHTS RESERVED CONTROL TEST QUESTION 1: GAAP CONCEPTS AND INCOME STATEMENT (45 marks) 1.1 Match each concept mentioned in COLUMN A with the description...

The consolidated accounts of Hexagon Bhd for the year ended 31 December 2019 were as follows. Group Statement of Financial Position for the years ended 31 December 2019 2019 2018 RM'000 RM'000 Fixed...

On 1 January 2014, Cowboys Ltd acquired all the issued shares in Tate Ltd. At that date, the plant of Tate Ltd had a fair value of $20 000 more than its carrying amount and an estimated useful life...

Please help with book-tax reconciliation and IRS form 1120 1. Please work alone - do not work in groups. You can email me or come see me and I will help you. 2. Do not use tax software to prepare the...

JUST NEED TO KNOW INPUTS TO FIND THE NPV VALUES ON EXCEL. NEED BY 12 PM CST IF POSSIBLE. B M N 0 3 Complete the steps below using cell references to given data or previous calculations. In some...

The following are the draft annual financial statements of We Stick It Ltd for the financial year ended 30 June 2019: We Stick It Ltd Statement of Financial Position as at 30 June 2019 2019 2018 R R...

Kidston provides bespoke soft furnishing and covers. You are provided with a list of figures and information at the end of the financial year 28 February 2021. Required: Prepare the Profit and Loss...

Which of the following is not an advantage of a virtualcompany? total control over every aspect of the organization low capital investment speed specialized management expertise flexibility

Gibson Motors manufactures specialty tractors. It has two divisions: a Tractor Division and a Tire Division. The Tractor Division can use the tires produced by the Tire Division. The market price per...

A porticlio will always have less risk than the riskest asset in it 7 9 the correlation of assets is less than perfectly posifive. True False

Edward's Manufactured Homes is considering replacing some machines. Edwards purchased the current machinery 2 years ago for $320. The company is considering replacing this machinery today with newer...

Lucas Inc. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $10 Direct labour 8 Variable manufacturing overhead 12 Fixed...

Q4//For the dc circuit shown in Fig.(3). One voltmeter and one wattmeter are installed on the circuit to measure the following quantities: Z1 for the measurement of the power consumed by the load. Zz...

The following table contains casting strength is to be optimized for the casting time (A, 40-60 s) and temperature (B, 200-260C). First 4 are points are factorial, next 4 axials and last 5 are...

In the framework of statistical process control, increasing the sample size n leads to an increased prevention cost and reduced appraisal cost. True False

Do not pay him, wait until I come

Do not get married, wait until I come, etc.

Do not come to the conclusion too quickly