please answer A B C D

5 Paragraph Styles The following information is available for the first three years of operations for Cooper Company: 1. Year Taxable Income 2014 $500,000 2015 350,000 2016 400,000 2. On January 2, 2014, heavy equipment costing $600,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2014 2015 2016 2017 Total $198.000 $270,000 $90,000 S42,000 $600,000 3. On January 2, 2015, $300,000 was collected in advance for rental of a building for a three- year period. The entire $300,000 was reported as taxable income in 2015, but $200,000 of the $300,000 was reported as unearned revenue at December 31, 2015 for book purposes. 4. Interest income of $20,000 from New York municipal bonds earned during 2014 5. The enacted tax rates are 40% for all years. (a) Compute the pretax income of 2014 (show your works). Focus [United States) L 10 t FB % $ 4 & 7 6 8 3 9 IP R T Y U wwwwwwwwwww Paragraph IS Styles 4. Interest income of $20,000 from New York municipal bonds earned during 2014. 5. The enacted tax rates are 40% for all years. (a) Compute the pretax income of 2014 (show your works). (b) Determine the deferred tax asset (or liability) at the end of 2014. (c) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2015. ish (United States ch o L 3 % 5 & 7 8 9 3 4 6 P V E LU R. . Y u (d) Answer the ending balance of the deferred tax asset (or liability) at the end of 2015