accounting
During 2021, equipment originally purchased for $75,000 (80% depreciated), was sold for a $10,000 gain. Also, Land
was sold at a loss of $15,000.
During 2021, $25,000 in cash dividends was declared.
For any entries that you make, adjust the DTA/DTL accounts accordingly, assuming a 25% tax rate. Also, the your tax
accountants have determined that it is more likely than not that 50% of your DTA will not be realized.
The company accrued the following two lawsuits, for a total of $60,000.
1 ‐ The company is suing a competitor for patent infringement, and the company lawyers think that it is probably
that the company will be paid $40,000.
2 ‐ The company is being sued by an individual for medical costs due to an accident caused by a driver. The
company lawyers think that it is probably that the company will pay $100,000 at the conclusion of the lawsuit.