On January 1, 2021, Roberts Company purchased major pieces of manufacturing equipment for a total of $10 million. Roberts uses straight-line depreciation for financial statement reporting and deducted 100% of the equipment's cost for income tax reporting in 2021. At December 31, 2023, the book value of the equipment was $75 million. At December 31, 2024, the book value of the equipment was $70 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $110 million. Assume an income tax rate of 20 %, the amount of current income tax expenses reported on 2024 income statement would be: O $24 million O $21 million O $23 million O $22 million
On January 1, 2021, Roberts Company purchased major pieces of manufacturing equipment for a total of $10 million. Roberts uses straight-line depreciation for financial statement reporting and deducted 100% of the equipment's cost for income tax reporting in 2021. At December 31, 2023, the book value of the equipment was $75 million. At December 31, 2024, the book value of the equipment was $70 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2024 was $110 million. Assume an income tax rate of 20 %, the amount of current income tax expenses reported on 2024 income statement would be: O $24 million O $21 million O $23 million O $22 million
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...
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![On January 1, 2021, Roberts Company purchased major pieces of manufacturing equipment for a total of $20 million. Roberts uses
straight-line depreciation for financial statement reporting and deducted 100% of the equipment's cost for income tax reporting in 2021.
At December 31, 2023, the book value of the equipment was $75 million. At December 31, 2024, the book value of the equipment was
$70 million. There were no other temporary differences and no permanent differences, Pretax accounting income for 2024 was $110
million. Assume an income tax rate of 20%, the amount of current income tax expenses reported on 2024 income statement would be:
$24 million
O $21 million
O $23 million
O $22 million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4fb361e6-5d4e-4424-b3c9-e5e74484a85f%2F62a52182-1aa9-40b3-96a6-8bc468b50e5c%2Fqrixrj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2021, Roberts Company purchased major pieces of manufacturing equipment for a total of $20 million. Roberts uses
straight-line depreciation for financial statement reporting and deducted 100% of the equipment's cost for income tax reporting in 2021.
At December 31, 2023, the book value of the equipment was $75 million. At December 31, 2024, the book value of the equipment was
$70 million. There were no other temporary differences and no permanent differences, Pretax accounting income for 2024 was $110
million. Assume an income tax rate of 20%, the amount of current income tax expenses reported on 2024 income statement would be:
$24 million
O $21 million
O $23 million
O $22 million
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