Generally Accepted Accounting Principles and Tax Basis

Topics: Generally Accepted Accounting Principles, Depreciation, Finance Pages: 1 (1122 words) Published: October 18, 2013
f';fa;d'a;f',af;ag';sdagl.;gdlal,g;adl,g,gal;am,dblv .cv z,vz mld;,ag,a;es'g.;'gad;a';ldg;gd;sal;,ger'fa,s.a;l,gdlag,dla,g;ewlwetp;lq4pewql,e;et,q;g,al,gal;g,dla;ew,tqleg,algm,eksgtmaq;,;'.E'S.AFD;Af?D/A>;T',;L,EL;On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2012, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2013, the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2012, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2013, the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2012, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2013, the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2012, the carrying value of the...
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