Assignment
Q1. Company ABC has the following income:
2014 $10,000
2015 $15,000
2016 $(1,000)
2017 $(30,000)
2018 $5,000
JEs to record loss carryback and forward for 2016, 2017 and 2018
Q2. Company ABC bought an equipment for $20,000 in 2015, with useful life of 5 years $5,000 residual value amortized using straight-line method.
a) Prepare a table to illustrate the differences accounting income vs taxable income caused by this equipment.
b) Assume, this equipment was sold at the end of2017 for $11,000. Please prepare JEs for 2015, 2016 and 2017
Q3. Company ABC has accounting income $500 for year 2016, 2017 and 2018, with following balance
2015 2016 2017 2018
Accounts Payable 100 110 120 90
Unearned Revenue 100 50 30 0
Prepaid Expense 100 80 40 0
Accounts Receivable 100 110 80 100
What are the taxable income for 2016, 2017 and 2018? Prepare all related JEs for these three years.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.