Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume the following facts for rty corporation for

Assume the following facts for RTY Corporation for Year 1. RTY recorded $2,300,000 of...

90.2K

Verified Solution

Question

Accounting

  1. Assume the following facts for RTY Corporation for Year 1.
  • RTY recorded $2,300,000 of book income.
  • At the end of the year, RTY had accumulated depreciation for book purposes of $100,000 and accumulated depreciation for tax purposes of $150,000. As of the beginning of the year, the accumulated book and tax depreciation balances were $80,000 and $120,000,
  • RTY paid premiums for officer life insurance of $50,000
  • RTY established a warranty reserve of $15,000
  • RTYs reserve for obsolete inventory decreased from $37,500 to $19,500
  • Assume a statutory income tax rate of 25 percent
  1. What are RTY's permanent items?
  2. What are RTY's changes in temporary differences?

My question: Is obsolete inventory considered permanent item? Also, do you need to add it back $18,000 ($37,500-$19,500) since it decreased? TY!

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Programming
1.2K views

for an array A of size N, and A[0] != A[n-1]. devise an efficient algorithm for...

Civil Engineering
1.2K views

1. describe how the driver and vehicle characteristics influence the geometric design of the highway 2. describe...

Biology
1.2K views

Tomato a e Fern Sponge b d b c e d c b b Mouse...

Biology
1.2K views

Compare and contrast how the maintenance of surgical suites and the use of surgical protocols...

Geometry
1.2K views

What is the name of a portion or share of ownership in a corporation A...

Basic Math
1.2K views

The following function is one to one Find the inverse o

Algebra
1.2K views

A parabola can be drawn given a focus of 10 7 and a directrix of...

Accounting
1.2K views

-10- II Donald Lennon is the president, founder, and majority owner...

Accounting
1.2K views

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold...

Finance
1.2K views

Hello, need help answering the following question. Thank you. ...

Finance
1.2K views

VP and HP had the following balance sheets as at December 31, 2010. VP ...

Finance
1.2K views

what is the correlation between the performance management system and employee development ?