Lincoln Transportation owns a fleet of semitrucks. The original cost of the fleet was $ Lincoln uses straightline depreciation for the fleet for accounting purposes, and MACRS depreciation for tax purposes. The company had a deferred tax liability balance of $ at the end of fiscal year related to the fleet.
At the end of fiscal year the GAAP book value of the fleet was $ while the tax book value was $ Lincoln's taxable income for fiscal year was $ Its tax rate was
Read the requirements.
Requirement Calculate the deferred tax liability related to the fleet as of the end of fiscal year
The deferred tax liability as of the end of fiscal year is
$
Requirement Record the tax accrual for as of the end of fiscal year Record debits first, then credits. Exclude explanations from any journal entries.
Journal Entry
tableDateJournal Entry,,Accounts,Debit,CreditDec
