Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. early in january 2021, deville company purchased m

Early in January 2021, DeVille Company purchased machinery costing $540,000. For financial reporting purposes, DeVille...

50.1K

Verified Solution

Question

Accounting

Early in January 2021, DeVille Company purchased machinery costing $540,000. For financial reporting purposes, DeVille Company has a December 31st year end and uses straight-line depreciation. DeVille estimates the useful life of this machinery to be four years with no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% over the life of the machinery. Pretax accounting income for 2021 was $640,000, which includes interest revenue of $12,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%.

Prepare the journal entry to record the 2021 provision for income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

NO WIKI or PLAGIARIZING!! Reflect on the concepts of linear and non-linear systems. What concepts (only the...

Advance Math
Q

One enzyme activates another enzyme which activates another enzyme Enzyme P can have two possible...

Biology
Q

A high resistance resistor and a lower resistance resistor. Are connected in parallel voltage source....

Physics
Q

10 A glass tube of 100 cm length is filled with water The water can...

Physics
Q

3 Write an equation of a line in slope intercept form which is perpendicular to...

Geometry
Q

A company discovers that to produce x = 660 new electronic parts, it will cost...

Basic Math
Q

ng Distributi Gaca The ages years of three government officials when they died in office...

Statistics
Q

Windsor Corp. had the following balances in receivable accounts at October 31, 2022 (in thousands):...

Accounting
Q

Calculate the cost of discounting a $100,000 bankersacceptance it is due in 90 days and...

Accounting
Q

Minden Co. is considering buying new computer software that will assist customers in their product...

Accounting
Q

1. The company borrowed $100,000 on a new note payable and required semiannual interest payments....

Accounting
Q

Hampstead Plc . has an investment opportunity. It must invest ...

Finance