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Marissa Group uses straght-line depreciasion for firancial tepoting purposes and accelerated depreciation on its taxx cotums. The conpary reponted $50,000 in income before tax and depreciation for book purposes. The oquipment has an onignal cost of $5,000. Straghe dine depreciation is $500, avid accelerated degreciation amounts to $1,500 for the assers first year of uttization. There are no othor book-tax diferences Read the resurements Requirement a. What is the book basis of the equpprient at the end of the fist ye The book basis of the equpment at the end of the fint yoar = Requirements a. What is the book basis of the equpment at the end of the frit yoar? b. What is the tax basis of twe equpment at the end of the first year? c. Compute the deferred tax lability, income tax payabie, and income tax exponse for the curent year assimng that Marissa is nLeject to a 40% tax ine. Marissa Group uses straght-line depreciasion for firancial tepoting purposes and accelerated depreciation on its taxx cotums. The conpary reponted $50,000 in income before tax and depreciation for book purposes. The oquipment has an onignal cost of $5,000. Straghe dine depreciation is $500, avid accelerated degreciation amounts to $1,500 for the assers first year of uttization. There are no othor book-tax diferences Read the resurements Requirement a. What is the book basis of the equpprient at the end of the fist ye The book basis of the equpment at the end of the fint yoar = Requirements a. What is the book basis of the equpment at the end of the frit yoar? b. What is the tax basis of twe equpment at the end of the first year? c. Compute the deferred tax lability, income tax payabie, and income tax exponse for the curent year assimng that Marissa is nLeject to a 40% tax ine

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