In B\'s December 31, 2016, balance sheet, the deferred revenue from the sale of

ID: 2498795 • Letter: I

Question

In B's December 31, 2016, balance sheet, the deferred revenue from the sale of this machine should be:

The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars):

The applicable tax rate is 33%. There are no other temporary or permanent differences.

Franklin's taxable income ($ in millions) is:

On December 31, 2016, B Corp. sold a machine to Royal and simultaneously leased it back for one year. Pertinent information at this date follows:

First question

In sale and lease back transaction gains from sale of equipment is amortized over the lease term.

In the case of B. Corp gain on sale of machine will be deffered and amortized over the term of lease.

Gain on Sale of machine = 777000 - 698000 = 79000

Deffered revenue from sale of machine on 31st December 2016 = $79000

Second Part

Statement showing calculation of taxable Income of franklin

Accounting Income $160 Add: Disallowed expenses - Overweight fines 8 - Depreciation expense 80 Less: Depreciation using MACRS 119 Taxable Income 129