ACT3392SpringTraditionalHWCh19&20 - HOMEWORK -...

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HOMEWORK - SPRING 2010 ALL homework assignments must be completed by using some type of computer software program, e.g., word, excel. YOU WILL NOT RECEIVE FULL CREDIT FOR THE HOMEWORK UNLESS IT IS COMPLETED BY USING A COMPUTER. NO CREDIT WILL BE GIVEN FOR LATE HOMEWORK. When completing your homework assignments DO NOT use any abbreviations, e.g., spell out Governmental Accounting Standards Board instead of simply writing GASB. As discussed during class, you can work on these homework assignments in groups or as an individual. 1. (4 points) In its first year of operations (2010) Pieters’ GAAP-based income before income taxes was $1,500,000. In its second year of operations (2011) it was $2,000,000. On its 2010 federal income tax return, Pieters’ was able to use a depreciation method that resulted in an additional $100,000 of depreciation deductions. This excess tax depreciation will reverse as follows: 50% in 2011, 30% in 2012, and 20% in 2013. At 12-31-10, Pieters’ GAAP-based balance sheet reported $75,000 of unearned rent revenue. Pieters will report this $75,000 as rent revenue on its 2011 GAAP-based income statement. Pieters’ tax rate for all years is 30%.
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This note was uploaded on 02/21/2011 for the course ACCT 3392 taught by Professor Dr.terpin during the Spring '10 term at Troy.

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ACT3392SpringTraditionalHWCh19&20 - HOMEWORK -...

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