On January 1, 2021, a company purchased equipment for $66,000. The asset has a 3-year useful...

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On January 1, 2021, a company purchased equipment for $66,000. The asset has a 3-year useful life and no residual value. • For financial reporting, the asset is depreciated on a straight-line basis. • For tax reporting, depreciation is $39,600 in 2021, $19,800 in 2022, and $6,600 in 2023 (based on MACRS). • Taxable income in 2021 is $263,000. There are no other differences between accounting and taxable income. • The tax rate is 25% for all years. Annual depreciation expense on the books is Income tax payable in 2021 is The balance of the deferred tax account at the end of 2021 is Income tax expense in 2021 is Pretax accounting income in 2021 is Net income in 2021 is On January 1, 2021, a company purchased equipment for $66,000. The asset has a 3-year useful life and no residual value. • For financial reporting, the asset is depreciated on a straight-line basis. • For tax reporting, depreciation is $39,600 in 2021, $19,800 in 2022, and $6,600 in 2023 (based on MACRS). • Taxable income in 2021 is $263,000. There are no other differences between accounting and taxable income. • The tax rate is 25% for all years. Annual depreciation expense on the books is Income tax payable in 2021 is The balance of the deferred tax account at the end of 2021 is Income tax expense in 2021 is Pretax accounting income in 2021 is Net income in 2021 is

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8 Equipment Cost 66000 Useful Life 3 Annual Depreciation expense on Books is 2... View the full answer