On July 1, 2018, Kazuyuki Corporation purchased an equipment for $90,000. At the time of purchase, the
Question:
2. Make the necessary journal entries to record the transactions related to the sale of the asset assuming Kazuyuki Corporation used the straight-line depreciation method. Make the necessary journal entries to record the transactions related to the sale of the asset assuming Kazuyuki Corporation used the double-declining depreciation method. Kazuyuki Corporation has only one customer. Each quarter, the revenue is $60,000 in cash for products delivered. In addition to the machine, each quarter, Kazuyuki Corporation spends $18,000 cash on salaries and $24,000 cash on rent. Corporate tax rates are 20% for each year.
3. Prepare the net income before tax expense reported publicly in the financial statements using the straight- line depreciation method for each calendar year 2018 through 2021.4. Prepare the taxable income reported privately to the tax authorities using the double-declining depreciation method for each calendar year 2018 through 2021.
Accounting Introduction To Financial Accounting
ISBN: 9781517089719
1st Edition
Authors: Henry Dauderis, David Annand