Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts. Equipment cost $50,000 Salvage 5,000 Useful life 5 Tax rate 21% Depreciation for book and tax purposes is as follows: Book Tax 20X1 9,000 20,000 20X2 9,000 12,000 20X3 9,000 7,200 20X4 9,000 4,320 20X5 9,000 1,480 What is the deferred taxes payable balance as of December 31, 20X3?

$2,562

Explanation:

Excess tax depreciation 20X1 = 20,000 - 9,000 = $11,000

Excess tax depreciation 20X2 = 12,000 - 9,000 = $3,000

Excess tax depreciation 20X3 = 7,200 - 9,000 =   ($1,800)

Total Excess tax depreciation                                   $12,200

Deferred taxes payable balance,Dec 31. 20X3 = Total Excess tax depreciation *  Tax rate = $12,200 * 21% = $2,562 Credit

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;