Victoria Company purchased a $100,000 conveyor belt for use in its main factory. It has a...

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Victoria Company purchased a $100,000 conveyor belt for use in its main factory. It has a 4 year useful life and a $0 salvage value. For the following 4 years Victoria recorded sales revenue of $300,000 each year and $200,000 in expenses, NOT INCLUDING DEPRECIATION nor INCOME TAX EXPENSE. Victoria uses straight-line depreciation method for financial accounting ("book") purposes and MACRS for tax accounting purposes. Under MACRS, Victoria can apply accelerated depreciation for the asset using the following percentages: YEAR 1 - 50%, YEAR 2 - 30%, YEAR 3 - 15%, and YEAR 4 - 5%. The income tax rate is 40% a. Prepare the complete JOURNAL ENTRY to record income tax expense for YEAR 2. b. Prepare the complete JOURNAL ENTRY to record income tax expense for YEAR 4. c. What is the BALANCE of the Deferred Tax Asset or Liability account at the end of YEAR 3? Victoria Company purchased a $100,000 conveyor belt for use in its main factory. It has a 4 year useful life and a $0 salvage value. For the following 4 years Victoria recorded sales revenue of $300,000 each year and $200,000 in expenses, NOT INCLUDING DEPRECIATION nor INCOME TAX EXPENSE. Victoria uses straight-line depreciation method for financial accounting ("book") purposes and MACRS for tax accounting purposes. Under MACRS, Victoria can apply accelerated depreciation for the asset using the following percentages: YEAR 1 - 50%, YEAR 2 - 30%, YEAR 3 - 15%, and YEAR 4 - 5%. The income tax rate is 40% a. Prepare the complete JOURNAL ENTRY to record income tax expense for YEAR 2. b. Prepare the complete JOURNAL ENTRY to record income tax expense for YEAR 4. c. What is the BALANCE of the Deferred Tax Asset or Liability account at the end of YEAR 3?

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