ACPAPI

Accounting Profit
Permanent Difference:
Impairment Loss: Goodwill
Interest Income
Interest Expense
Royalty Revenue
Financial Income Subject to Final Tax
Temporary Difference
Taxable Difference
Excess Tax Depreciation
Gain on Disposal (Reversal of DTL)
Prepaid Insurance
Development Cost
Deductible Difference
Doubtful Accounts Expense
Reversal of DTA
Taxable Income
Current Tax Expense
Deferred Tax Expense
Total Income Tax Expense
FIST x Tax Rate

252,450.00
7,000.00
(24,000.00)
12,450.00
(2,000.00)
245,900.00

(13,333.40)
10,000.20
(5,000.00)
(90,000.00)

Equipment Depreciation
Book Depreciation
Excess Tax Depreciation
Gain or Loss on Sale
Book Recorded Loss
Tax Gain or Loss on Disposal
Cost
AD
Carrrying Amount
Difference in Recorded Gain or Loss
Doubtful Accounts Per Books
Write Off
Reversal of DTA

(2,000.00)
(4,000.00)
141,566.80
49,548.38
36,516.62
86,065.00
86,065.00

Rent Revenue from Books

Rent Collection
Reversal of DTL

Annual Leave Expense

Per books
Payments
Reversal of DTA

(53,333.40)
40,000.00
(13,333.40)

(6,667.00)
66,667.00
40,000.20
26,666.80

Gain or Loss
14,000.00
(16,000.00)
(2,000.00)

(25,000.00)
27,000.00
2,000.00

54,000.00
(58,000.00)
(4,000.00)

3,333.20
10,000.20

Beg. Balance
Depreciation
Retirement
Ending Balance

Beg. Balance
Doubtful Accounts
Write Off
Ending Balance

Beg. Balance
Rent Revenue
Collections
Ending Balance

Beg. Balance
Annual Leave Expense
Payments
Ending Balance

Supporting Computations of Accounts

AD
Dr.
Cr.
eg. Balance
(85,500.00)
epreciation
(40,000.00)
etirement
30,000.00
nding Balance
(95,500.00)
ADA
Dr.

eg. Balance
oubtful Accounts

Cr.
(18,000.00)
(14,000.00)

16,000.00

nding Balance

(16,000.00)

eg. Balance
ent Revenue
ollections
nding Balance

Rent Receivable
Dr.
Cr.
5,500.00
25,000.00
(27,000.00)
3,500.00

Provision for Annual Leave

Dr.
Cr.
eg. Balance
(65,000.00)
nnual Leave Expense
(54,000.00)
ayments
58,000.00
nding Balance
(61,000.00)

Balance Sheet Approach

Tax Rate

0.35
2005
Carrying Value

Assets
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Inventories
Prepaid Insurance
Rent Receivable
Development - filter project
Accumulated Amortization
Equipment
Accumulated Depreciation
Goodwill
Accumulated Impairment
Deferred Tax Asset
Liabilities
Accounts Payable
Provision for annual Leave
Mortgage Loan
Deferred Tax Liability
Current Tax liability
Total

Tax Base

65,000.00
277,000.00
(18,000.00)
185,000.00
25,000.00
5,500.00

###
277,000.00
###
###

266,667.00
(85,500.00)
35,000.00
(7,000.00)

266,667.00
(114,000.13)
35,000.00
(7,000.00)

(294,000.00)
(65,000.00)
(150,000.00)

(294,000.00)
(150,000.00)

Equipment Analysis

Equipment 2005
Accumulated Depreciation 2005
Depreciation per year
Age of Asset as of 2005

Carrying Amount
Sold
Old
Total
66,667.00
200,000.00
266,667.00
20,000.00
65,500.00
85,500.00
10,000.00
30,000.00
40,000.00
2.00
2.18
Tax Base

Equipment 2005
Accumulated Depreciation 2005
Depreciation per year
Age of Asset as of 2005

Sold
Old
66,667.00
26,666.80
13,333.40
2.00

Dr.

ADA
Cr.

200,000.00
87,333.33
40,000.00
2.18

Total
266,667.00
114,000.13
53,333.40
4.18

Beg. Balance
Depreciation
Disposed
Ending Balance

85,500.00
40,000.00
30,000.00
95,500.00

2005
Difference

(18,000.00)
25,000.00
28,500.13
-

(65,000.00)
-

DTA

DTL

6,300.00
8,750.00

9,975.05

22,750.00

29,050.00

18,725.05

2006
Tax Base

Carrying Value

Difference

55,000.00
295,000.00
(16,000.00)
162,000.00
30,000.00
3,500.00
120,000.00
(30,000.00)
200,000.00
(95,500.00)
35,000.00
(14,000.00)

55,000.00
295,000.00
162,000.00
3,500.00
200,000.00
(127,333.33)
35,000.00
(14,000.00)

(16,000.00)
30,000.00
120,000.00
(30,000.00)
31,833.33
-

(310,500.00)
(61,000.00)
(100,000.00)

(310,500.00)
(100,000.00)

(61,000.00)
-

DTA

5,600.00

21,350.00

26,950.00

Equipment 2005
Accumulated Depreciation 2005
Depreciation per year
Age of Asset as of 2005

Carrying Amount
Old
Total
200,000.00
200,000.00
95,500.00
95,500.00
30,000.00
30,000.00
3.18

Equipment 2005
Accumulated Depreciation 2005
Depreciation per year
Age of Asset as of 2005

Tax Base
Old
Total
200,000.00
200,000.00
127,333.33
127,333.33
40,000.00
40,000.00
3.18
3.18

Sold

Sold

DTA
DTL
ITE-D (Debit)

Net Income
Permanent Difference
Royalty Revenue
Impairment Loss Goodwill
Interest Income
Interest Expense
FIST
Income Tax Expense
Income Tax Expense - Deferred
Income Tax Expense Current

2,005.00
29,050.00
(18,725.05)

2,006.00 Change
26,950.00
(2,100.00)
(53,141.67) (34,416.62)
(36,516.62)

252,450.00
(2,000.00)
7,000.00
(24,000.00)
12,450.00
245,900.00
86,065.00
36,516.62
49,548.38

Nondeductible portion

DTL

10,500.00
42,000.00
(10,500.00)
11,141.67

53,141.67

deductible portion

Rate

Interest Income
0.43 (30,000.00) (12,857.14)

Cash
Accounts Receivable
Allowance for doubtful accounts
Inventories
Prepaid Insurance
Rent receivable
Development - filter project
Accumulated amortization
Equipment
Accumulated Depreciation
Goodwill
Accumulated Impairment