Part 1 Fresno Transportation owns a fleet of 50 semi-trucks. The original cost of the...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Part 1
Fresno
Transportation owns a fleet of
50
semi-trucks. The original cost of the fleet was
$7,500,000.
Fresno
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
$220,000
at the end of fiscal year
2017
related to the fleet.
At the end of fiscal year
2018,
the GAAP book value of the fleet was
$6,230,000,
while the tax book value was
$5,610,000.
Fresno's
taxable income for fiscal year
2018
was
$6,400,000.
Its tax rate was
40%.
Requirements
| 1. | Calculate the deferred tax liability related to the fleet as of the end of fiscal year 2018. |
| 2. | Record the tax accrual for 2018 as of the end of fiscal year2018. |
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.