Answer:
2019 $8,000
2020 $19,000
Explanation:
Calculation to determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020.
Calculation for 2019 Temporary differences
2019
Using this formula
2019 Temporary differences = 2019 Depreciation- 2019 depreciation expense
Let plug in the formula
2019 Temporary differences =$32,000 - $24,000
2019 Temporary differences= $8,000
Calculation for 2020 Temporary differences
Using this formula
2020 Temporary differences=(2019 Depreciation+2020 Depreciation)-( 2019 Depreciation expense+2020 Depreciation expense)
Let plug in the formula
2020 Temporary differences= ($32,000 + $37,000) - ($24,000 + $26,000)
2020 Temporary differences=$69,000-$50,000
2020 Temporary differences= $19,000
Therefore the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020 will be $8,000 and $19,000
