Pretax Financial Taxable Tax Income 2010

Year Income Income Rate Tax Entry: Income Tax $6,000

2010 $24,998 $20,000 30% $6,000 Tax payable $6,000
2011 38,670 27,000 30% $8,100
2012 27,886 34,000 30% $10,200 2011
2013 29,446 40,000 30% $12,000 Income Tax $8,100
Tax payable $8,100

2012
1) Income Tax $10,200
Straight Line MACRS Tax payable $10,200
Purchased cost $60,000 $60,000 (beginning 2010)
Life (year) 4 3 2013
Rate 25% 200% Income Tax $12,000
Tax payable $12,000
Deprec. Exp Temporary Tax Def. Tax
Year SLM MACRS Difference Rate Asset (Liability)
2010 $15,000 $40,000 ($25,000) 30% ($7,500)
2011 $15,000 $13,333 $1,667 30% $500
2012 $15,000 $6,667 $8,333 30% $2,500
2013 $15,000 $15,000 30% $4,500
$0
Accum. Depr.
Year SLM MACRS
2010 $15,000 $40,000
2011 $30,000 $53,333
2012 $45,000 $60,000
2013 $60,000
2)
Commercial Fiscal Difference 2010
Fixed Assets Entry: Def. Tax assets $7,500
2010 $45,000 $20,000 $25,000 Income tax $7,500
2011 $30,000 $6,667 $23,333
2012 $15,000 $0 $15,000 2011
2013 $0 $0 $0 Income Tax $500
Def. Tax Liability $500

2012
Income Tax $2,500
Def. Tax Liability $2,500

2013
Income Tax $4,500
Def. Tax Liability $4,500