Caleb Corporation has three financial statement elements for which the December 31, 2006, book value is different than the December 31, 2006, tax basis
|
Book value |
Tax basis |
Difference |
|
|
Equipment |
$200,000 |
$120,000 |
$80,000 |
|
Prepaid officers insurance policy |
75,000 |
0 |
75,000 |
|
Warranty liability |
50,000 |
0 |
50,000 |
As a result of these differences, future taxable amounts are
- $ 50,000
- $ 80,000
- $155,000
- $205,000