What the gross amount of davis'' deductible


Davis, Inc. uses the accrual method of accounting and the calendar year accounting period for both financial reporting and tax purposes. Davis has provided the following information from its 2010 financial statements:

Operating Revenue
Sales - $1,000,000
Cost of Goods Sold - 400,000
Gross Profit - 600,000

Operating Expenses
Meals and Entertainment - 40,000
Bad Debts - 10,000
Depreciation - 100,000
Warranty Expense - 20,000
Fine (levied by Environmental Protection Agency) - $10,000
Other Expenses - 250,000

Other Income
Municipal Bond Interest Income - 10,000

Net Income Before Tax - 180,000
Federal Income Tax - 80,000
Net Income - 100,000

In addition, Davis has provided the following information:

• Allowance for Doubtful Accounts December 31, 2009 - $15,000
• Allowance for Doubtful Accounts December 31, 2010 - $20,000
• MACRS depreciation (including §179 deduction) for 2010 - $175,000
• Warranty Reserve December 31, 2009 - $50,000
• Warranty Reserve December 31, 2010 - $40,000
• Accumulated depreciation per financial statements December 31, 2010 - $400,000
• Accumulated tax depreciation (including §179) December 31, 2010 - $500,000

At December 31, 2010, what the gross amount of Davis' deductible temporary differences is:

 

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