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Lincoln Transportation owns a fleet of 48 semi-trucks. The original cost of the fleet was...

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Accounting

Lincoln Transportation owns a fleet of 48 semi-trucks. The original cost of the fleet was $9,120,000. Lincoln uses straight-line depreciation for the fleet for accounting purposes, and MACRS depreciation for tax purposes. The company had a deferred tax liability balance of $170,000 at the end of fiscal year 2020 related to the fleet.
At the end of fiscal year 2021, the GAAP book value of the fleet was $6,260,000, while the tax book value was $5,620,000. Lincoln's taxable income for fiscal year 2021 was $6,000,000. Its tax rate was 30%.
Read the requirements.
Requirement 1. Calculate the deferred tax liability related to the fleet as of the end of fiscal year 2021.
The deferred tax liability as of the end of fiscal year 2021 is
$192,000
Requirement 2. Record the tax accrual for 2021 as of the end of fiscal year 2021.(Record debits first, then credits. Exclude explanations from any journal entries.)
Journal Entry
\table[[Date,Journal Entry,,],[2021,Accounts,Debit,Credit],[Dec 31,,,],[,,,],[,,,]]
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