Alpha began operations in 2015. It reported $500 in revenues. It reported $200 depreciation expense on its 2015 tax return;

Alpha began operations in 2015. It reported $500 in revenues. It reported $200 depreciation expense on its 2015 tax return; however, it reported $50 depreciation expense on its 2015 income statement. The difference in depreciation (Alpha’s only book-tax difference) is a temporary book-tax difference that will reverse over time. Assuming a constant tax rate of 30%. What will be the balance in the DTL account in Alpha’s 2015 balance sheet?


Leave a Reply

Your email address will not be published.