For calendar year 2021, Carla Vista Corp. reported depreciation of $1670000 in its income statement. On its 2021 income tax return, Carla Vista reported depreciation of $2533000. Carla Vista's income statement also included $321000 accrued warranty expense that will be deducted for tax purposes when paid. Carla Vista's enacted tax rates are 20% for 2021 and 2022, and 15% for 2023 and 2024. The depreciation difference and warranty expense will reverse over the next three years as follows: 2022 2023 2024 Depreciation Difference Warranty Expense $341000 301000 221000 $863000 $67000 107000 147000 $321000 These were Carla Vista's only temporary differences. In Carla Vista's 2021 income tatement, the deferred portion of its provision for income taxes should be
For calendar year 2021, Carla Vista Corp. reported depreciation of $1670000 in its income statement. On its 2021 income tax return, Carla Vista reported depreciation of $2533000. Carla Vista's income statement also included $321000 accrued warranty expense that will be deducted for tax purposes when paid. Carla Vista's enacted tax rates are 20% for 2021 and 2022, and 15% for 2023 and 2024. The depreciation difference and warranty expense will reverse over the next three years as follows: 2022 2023 2024 Depreciation Difference Warranty Expense $341000 301000 221000 $863000 $67000 107000 147000 $321000 These were Carla Vista's only temporary differences. In Carla Vista's 2021 income tatement, the deferred portion of its provision for income taxes should be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For calendar year 2021, Carla Vista Corp. reported depreciation of $1670000 in its
income statement. On its 2021 income tax return, Carla Vista reported depreciation
of $2533000. Carla Vista's income statement also included $321000 accrued
warranty expense that will be deducted for tax purposes when paid. Carla Vista's
enacted tax rates are 20% for 2021 and 2022, and 15% for 2023 and 2024. The
depreciation difference and warranty expense will reverse over the next three years as
follows:
2022
2023
2024
Depreciation Difference Warranty Expense
$341000
301000
221000
$863000
$67000
107000
147000
$321000
These were Carla Vista's only temporary differences. In Carla Vista's 2021 income
tatement, the deferred portion of its provision for income taxes should be
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