Analysis of Income Tax

For the purpose of Income tax Reporting
Y1
Revenue
Less: Depriciation
Less: Warranty
Taxable income
Less: tax
Net income
Y2
5,000
3,000
5,000
3,000
2,000
800
1,200
2,000
800
1,200
For the purpose of Financial Reporting

Y1
Revenue
Less: Depriciation
Less: Warranty
Pretax Income
Less: tax
Net income
DTL
Deffered Tax Expense
Y2
5,000
2,000
5,000
2,000
3,000
1,200
1,800
3,000
1,200
1,800
400
400
ome tax Reporting

Y3
Total
5,000
15,000
6,000
5,000
2,000
3,000
9,000
3,600
5,400
Y1
Revenue
Less: Depriciation
Less: Warranty
Taxable income
Less: tax
Net income
nancial Reporting
Y3
(800)
5,000
2,000
3,000
Total
5,000
15,000
2,000
6,000
3,000
1,200
1,800
5,000
9,000
3,600
5,400
Y1
Revenue
Less: Depriciation
Less: Warranty
Pretax Income
Less: tax
Net income
DTA
5,000
500
4,500
1,800
2,700
(200)
Income tax Reporting

Y2
Y3
5,000
Total
5,000
15,000
1,500
3,500
1,400
2,100
5,000
2,000
3,000
1,500
13,500
5,400
8,100
Y1
Revenue
Less: Depriciation
Less: Warranty
Taxable income
Less: tax @ 40%
Net income
f Financial Reporting
Y2
Y3
5,000
500
4,500
1,800
2,700
(200)
Y2
5,000
3,000
5,000
3,000
2,000
800
1,200
2,000
800
1,200

Total
5,000
15,000
500
4,500
1,800
2,700
400
1,500
13,500
5,400
8,100
Y1
Revenue
Less: Depriciation
Less: Warranty
Pretax Income
Less: tax @ 40%
Net income
DTL
Y2
5,000
2,000
500
2,500
1,000
1,500
5,000
2,000
500
2,500
1,000
1,500
200
200
come tax Reporting

Y3
5,000
1,500
3,500
1,400
2,100
Total
15,000
6,000
1,500
7,500
3,000
4,500
inancial Reporting
Y3
5,000
2,000
500
2,500
1,000
1,500
(400)
Total
15,000
6,000
1,500
7,500
3,000
4,500

Y1
Revenue
Less: Depriciation
Less: Warranty
Taxable income
Less: tax
Net income
Y2
5,000
3,000
5,000
3,000
2,000
800
1,200
2,000
800
1,200

Y1
Revenue
Less: Depriciation
Less: Warranty
Pretax Income
Less: tax
Net income
DTL
DTA
DTL
Y2
5,000
2,000
500
2,500
1,000
1,500
400
(200)
200
5,000
2,000
500
2,500
1,000
1,500
400
(200)
200
come tax Reporting

Y3
5,000
1,500
3,500
1,400
2,100
Total
15,000
6,000
1,500
7,500
3,000
4,500
inancial Reporting
Y3
5,000
2,000
500
2,500
1,000
1,500
(800)
400
(400)
Total
15,000
6,000
1,500
7,500
3,000
4,500

Y1
Revenue
Less: Depriciation
Less: Warranty
Taxable income
Less: tax
Net income
Y2
5,000
3,000
Y3
5,000
3,000
2,000
800
1,200
5,000
1,500
3,500
1,225
2,275
2,000
700
1,300
Total
15,000
6,000
1,500
7,500
2,725
4,775

Y1
Revenue
Less: Depriciation
Less: Warranty
Pretax Income
Less: tax
Net income
DTL
Y2
Y3
5,000
2,000
500
2,500
1,000
1,500
5,000
2,000
500
2,500
875
1,625
200
175
5,000
2,000
500
2,500
875
1,625
(350)
Total
15,000
6,000
1,500
7,500
2,750
4,750
YEAR @ TAX RATE CHANGE ENACTED IN YEAR 2

Y1
Revenue
Less: Depriciation
Less: Warranty
Taxable income
Less: tax
Net income
5,000
3,000
Y2
5,000
3,000
Y3
5,000
Total
15,000
6,000
2,000
800
1,200
2,000
700
1,300
5,000
1,750
3,250
9,000
3,250
5,750

Y1
Revenue
Less: Depriciation
Less: Warranty
Pretax Income
Less: tax
Net income
DTL
At 40 Percent
At 1 percent
At 35 Percent
Difference
Y2
Y3
5,000
2,000
5,000
2,000
3,000
1,200
1,800
3,000
1,050
1,950
400
350
400
1,000.0
350.00
50.00
Total
5,000
15,000
2,000
6,000
3,000
1,050
1,950
(700)
9,000
3,300
5,700

Y1
Revenue
Less: Depriciation
Less: Warranty
Taxable income
Less: tax
Net income
Y2
5,000
5,000
2,000
3,000
5,000
Y3
5,000
Total
15,000
5,000
1,750
3,250
1,500
3,500
1,225
2,275
1,500
13,500
4,975
8,525

Y1
Revenue
Less: Depriciation
Less: Warranty
Pretax Income
Less: tax
Net income
DTA
At 40 Percent
At 1 percent
At 35 Percent
Difference
Y2
Y3
5,000
5,000
500
4,500
1,800
2,700
500
4,500
1,575
2,925
(200)
(200)
(500.0)
(175.00)
(25.00)
(175)
Total
5,000
15,000
500
4,500
1,575
2,925
350
1,500
13,500
4,950
8,550

Y1
Revenue
Less: Depriciation M1
Taxable income
Less: tax
Net income
Y2
10,000
3,000
7,000
2,800
4,200
Y3
Y4
10,000
3,000
3,000
10,000
4,000
1,600
2,400
7,000
2,800
4,200
10,000
3,000
10,000
4,000
6,000

Y1
Revenue
Pretax Income
Less: tax
Net income
DTL
Y2
10,000
2,000
Y3
Y4
10,000
2,000
2,000
10,000
2,000
2,000
10,000
8,000
3,200
4,800
6,000
2,400
3,600
6,000
2,400
3,600
8,000
3,200
4,800
400
800
1,200
(400)
2,000
(800)
Y5
10,000
Y6
10,000
Total
30,000
6,000
10,000
4,000
6,000
10,000
4,000
6,000
18,000
7,200
10,800
Y5
10,000
Y6
10,000
Total
30,000
6,000
10,000
4,000
6,000
10,000
4,000
6,000
20,000
8,000
12,000

Analysis of Income Tax

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Analysis of Income Tax

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For the purpose of Income tax Reporting

For the purpose of Financial Reporting

ome tax Reporting

For the purpose of Income tax Reporting

For the purpose of Financial Reporting

Income tax Reporting

For the purpose of Income tax Reporting

For the purpose of Financial Reporting

come tax Reporting

For the purpose of Income tax Reporting

For the purpose of Financial Reporting

come tax Reporting

For the purpose of Income tax Reporting

For the purpose of Financial Reporting

YEAR @ TAX RATE CHANGE ENACTED IN YEAR 2

For the purpose of Financial Reporting

For the purpose of Income tax Reporting

For the purpose of Financial Reporting

For the purpose of Income tax Reporting

For the purpose of Financial Reporting

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