The following information was taken from Buccaneer Corporation's 2011 income statement:

Buccaneers' first year of operations was 2011. The company has a 30 percent tax rate. Management decided to use accelerated depreciation for tax purpose and the straight-line method of depreciation for financial reporting purposes. The amount charged to depreciation expense in 2011 was $600,000. Assuming no other differences existed between book income and taxable income, what amount did Buccaneer deduct for depreciation on its tax return for 2011?

Question

The following information was taken from Buccaneer Corporation's 2011 income statement:

Buccaneers' first year of operations was 2011. The company has a 30 percent tax rate. Management decided to use accelerated depreciation for tax purpose and the straight-line method of depreciation for financial reporting purposes. The amount charged to depreciation expense in 2011 was $600,000. Assuming no other differences existed between book income and taxable income, what amount did Buccaneer deduct for depreciation on its tax return for 2011?

Quizplus · Accepted Answer

The Answer of The following information was taken from Buccaneer Corporation's 2011 income statement:

Buccaneers' first year of operations was 2011. The company has a 30 percent tax rate. Management decided to use accelerated depreciation for tax purpose and the straight-line method of depreciation for financial reporting purposes. The amount charged to depreciation expense in 2011 was $600,000. Assuming no other differences existed between book income and taxable income, what amount did Buccaneer deduct for depreciation on its tax return for 2011?

The Following Information Was Taken from Buccaneer Corporation's 2011 Income