The following information is available for Sandhill Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $284,700. 4. Tax rate for all years, 20%.
The following information is available for Sandhill Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $284,700. 4. Tax rate for all years, 20%.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 7DQ
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The following information is available for Sandhill Corporation for 2019 (its first year of operations).
1. | Excess of tax |
|
2. | Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. | |
3. | Pretax financial income, $284,700. | |
4. | Tax rate for all years, 20%. |
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