Guided Walkthroughs
The $10 Depreciation Walk, Extended — Step 9 of 10: The deferred-tax wrinkle — now the extra $10 of depreciation is on the TAX books only (bonus/accelerated depreciation); book depreciation is unchanged. Walk it.
Model answer
IS: NOTHING changes — book depreciation didn't move, and total book tax expense is also unchanged (current tax falls $2.50, deferred tax expense rises $2.50; they offset). Net income unchanged. CFS:…
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