Balance of deferred tax account at the end of 2015. Given Information: Purchase cost of heavy machinery is $200,000. Useful life is 5 years. Advance rental payment received amounted to $120,000. Taxable income is $120,000. Unearned advance received is $80,000.

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Answer 1

Question

Chapter 17, Problem 17.4P

a.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

b.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

c.

To determine

To prepare: Journal entry for year 2013 and 2014.

d.

To determine

To prepare: Journal entry for year 2014 and 2015.

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Answer 2

Question

Chapter 17, Problem 17.4P

a.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

b.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

c.

To determine

To prepare: Journal entry for year 2013 and 2014.

d.

To determine

To prepare: Journal entry for year 2014 and 2015.

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Answer 3

Question

Chapter 17, Problem 17.4P

a.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

b.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

c.

To determine

To prepare: Journal entry for year 2013 and 2014.

d.

To determine

To prepare: Journal entry for year 2014 and 2015.

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Answer 4

Question

Chapter 17, Problem 17.4P

a.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

b.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

c.

To determine

To prepare: Journal entry for year 2013 and 2014.

d.

To determine

To prepare: Journal entry for year 2014 and 2015.

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Answer 5

Chapter 17, Problem 17.4P

a.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

b.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

c.

To determine

To prepare: Journal entry for year 2013 and 2014.

d.

To determine

To prepare: Journal entry for year 2014 and 2015.

Answer 6

Chapter 17, Problem 17.4P

a.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

Answer 7

Chapter 17, Problem 17.4P

a.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

Answer 8

b.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

Answer 9

b.

To determine

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

Answer 10

c.

To determine

To prepare: Journal entry for year 2013 and 2014.

Answer 11

c.

To determine

To prepare: Journal entry for year 2013 and 2014.

Answer 12

d.

To determine

To prepare: Journal entry for year 2014 and 2015.

Answer 13

d.

To determine

To prepare: Journal entry for year 2014 and 2015.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Balance of deferred tax account at the end of 2015. Given Information: Purchase cost of heavy machinery is $200,000. Useful life is 5 years. Advance rental payment received amounted to $120,000. Taxable income is $120,000. Unearned advance received is $80,000.

Balance of deferred tax account at the end of 2015. Given Information: Purchase cost of heavy machinery is $200,000. Useful life is 5 years. Advance rental payment received amounted to $120,000. Taxable income is $120,000. Unearned advance received is $80,000.

Balance of deferred tax account at the end of 2015. Given Information: Purchase cost of heavy machinery is $200,000. Useful life is 5 years. Advance rental payment received amounted to $120,000. Taxable income is $120,000. Unearned advance received is $80,000.

To prepare: Journal entry for year 2013 and 2014.

To prepare: Journal entry for year 2014 and 2015.

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Chapter 17 Solutions

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.

Balance of deferred tax account at the end of 2015.

Given Information:

Purchase cost of heavy machinery is $200,000.

Useful life is 5 years.

Advance rental payment received amounted to $120,000.

Taxable income is $120,000.

Unearned advance received is $80,000.