Company purchased a light truck on January 2 2010 for $18000. The truck which
will be used for deliveries has the following characteristics: Estimated life:
5 years Estimated residual value: $3000 Depreciation for financial statements:
straight-line Depreciation for income tax purposes: MARCS (three- year-life)
From 2010 through 2014 each year the company had sales of $100000 cost of
goods sold of $60000 and operating expenses (excluding depreciation) of
$15000. The truck was disposed of on December 31 2014 for $2000.1.
Prepare an income statement for financial reporting through pretax accounting
income for each of the five years 2010 through 2014.2. Prepare an income
statement for income tax purposes through taxable income for each of the five
years 2010 through 2014.3. Compare the total income for all five years
under requirement 1 and Requirement 2.
The Hunter Company purchased a light truck on January 2 2010 for $18000. The tru
Saturday July 23, 2022