Oriole Industries computed a pretax financial income of $118,500 for the first year of its operations ended December 31,2014.Oriole uses an accelerated cost recovery method on its tax return,and straight-line depreciation on its books.
The difference between the tax and book deduction for depreciation over the five-year life of the assets acquired in 2014 are as follows:
The enacted tax rates for this year and the next four years are as follows:
Use the provisions of FASB Statement No.109 and assume that it is more likely than not that income will be sufficient in all future years to realize any deductible amounts.

Question

Oriole Industries computed a pretax financial income of $118,500 for the first year of its operations ended December 31,2014.Oriole uses an accelerated cost recovery method on its tax return,and straight-line depreciation on its books.
The difference between the tax and book deduction for depreciation over the five-year life of the assets acquired in 2014 are as follows:
  The enacted tax rates for this year and the next four years are as follows:
  Use the provisions of FASB Statement No.109 and assume that it is more likely than not that income will be sufficient in all future years to realize any deductible amounts.

Quizplus · Accepted Answer

The Answer of Oriole Industries computed a pretax financial income of $118,500 for the first year of its operations ended December 31,2014.Oriole uses an accelerated cost recovery method on its tax return,and straight-line depreciation on its books.
The difference between the tax and book deduction for depreciation over the five-year life of the assets acquired in 2014 are as follows:
  The enacted tax rates for this year and the next four years are as follows:
  Use the provisions of FASB Statement No.109 and assume that it is more likely than not that income will be sufficient in all future years to realize any deductible amounts.

Oriole Industries Computed a Pretax Financial Income of $118,500 for the First