Assume that a corporation in the 25 percent tax bracket purchases a piece of equipment for $67,000 with a ten-year useful life and no estimated salvage value. The corporation uses straight-line depreciation for book purposes and double-declining-balance depreciation for tax purposes. The first-year temporary difference, using income tax allocation procedures, would result in a
a. debit to Deferred Income Taxes of $1,675.
b. credit to Deferred Income Taxes of $6,700.
c. credit to Deferred Income Taxes of $1,675.
d. debit to Deferred Income Taxes of $6,700.
C
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Depreciation matches the cost of an asset against the revenues it will produce
Indicate whether the statement is true or false
The salary allocation to partners used in dividing net income would also appear as salary expense on the partnership income statement
Indicate whether the statement is true or false
Rebecca has diabetes and is considered disabled under the Americans with Disabilities Act. Her boss allows her to take breaks to eat, to take her medication, and to test her blood sugar levels. These actions by her employer are _________.
A. illegal discrimination B. compensatory damages C. reasonable accommodations D. bona fide occupational qualifications E. None of the above
Purple Airlines has ordered 30 small jets from its supplier. The supplier has estimated the first aircraft will require 350 days of direct labor to manufacture and assemble. Based on past experience, the supplier estimates the learning curve to be 75%. Estimate the average number of days of direct labor for all 30 jet aircrafts.
a. 231.43 days b. 121.43 days c. 133.54 days d. 156.43 days