Turnip company purchased an asset at a cost of 10000 with a


Turnip Company purchased an asset at a cost of $10,000 with a ten year life during the current year. The company uses differing depreciation methods for financial reporting and income tax purposes. The depreciation expense during the current year for financial reporting is $1,000 and for income tax purposes is $2,000. Turnip is subject to a 30% enacted future tax rate. Prepare a schedule to compute Turnip's 

(a) Ending future taxable amount, 

(b) Ending deferred tax liability, 

(c) Change in deferred tax liability (deferred tax expense) for the current year. 

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Taxation: Turnip company purchased an asset at a cost of 10000 with a
Reference No:- TGS01154294

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