upon time frame otherwise the company will be in default and risks affecting

Upon time frame otherwise the company will be in

This preview shows page 4 - 6 out of 6 pages.

upon time frame, otherwise the company will be in default and risks affecting the company’s future plans for expansion. Current Tax Structure Peyton Approved utilizes two different methods of depreciation. The straight-line method is utilized for book and MACRS is utilized for the tax return. Currently there is a deferred tax expense and a deferred tax liability in the amount of $52,325.25 due to the MACRS depreciation being $209,301.00 higher than the book value. In addition, Peyton operates as a C Corporation
Image of page 4
and has since the company was first established. There have been some recent changes to the tax structure that could ultimately impact the company. If the current tax rate increases, this will cause a decrease to the net income for the company.
Image of page 5
References Bragg, S. (2019). Other comprehensive income . [online] AccountingTools. Available at: Chen, J. (2019). Debt Financing . [online] Investopedia. Available at: Investopedia. (2018). How do equity financing and debt financing affect a company's financials? . [online] Available at: - companys-financials-compared-effects-debt-financing.asp McClure, B. (2012). Evaluating Retained Earnings: What Gets Kept Counts . [online] Investopedia. Available at: Whalen, J., Jones, J. and Pagach, D. (2017). Intermediate Accounting: Reporting and Analysis . 2nd ed. [ebook] Boston.
Image of page 6

You've reached the end of your free preview.

Want to read all 6 pages?

  • Fall '17
  • Sean Cote
  • Peyton

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes