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Obadiah Vineyard Case
Obadiah Vineyard Case
Obadiah Vineyard Case
Balance Sheet
Cash
Accounts Receivables
TOTAL CURRENT ASSETS 300207.4 366141.2 383959.6 446445.4 560921.9 726968.7
PPE
- Vines and Trellis 686900 686900 686900 686900 686900 686900
Less: Acc Depreciation -22174 -35924 -49674 -63424 -77174 -90924
- Land 400000 400000 400000 400000 400000 400000
Deferred Tax Asset 67649.2 64179.2 87252 97858.4 81102.4 39010.4
TOTAL ASSETS 1432583 1481296 1508438 1567780 1651750 1761955
1 GAAP capitalised expenses that prepared an asset for use and depreciation began once the asset beg
this case, 2007)
2 Depreciation Schedule
Rootstock and Trellising 351400
Add: Farmng Cost 125500
Total Cost to be depreciated 476900
GAAP LIFE 50 years
Tax Life 10 years
Year MACRS Dep Rate MACRS Dep Amount MACRS Acc Dep GAAP Dep Amount
2005 10 47690 47690 9538
2006 18 85842 133532 9538
2007 14.4 68673.6 202205.6 9538
2008 11.52 54938.88 257144.48 9538
2009 9.22 43970.18 301114.66 9538
2010 7.37 35147.53 336262.19 9538
3 Deferred Tax Liability Schedule
Year GAAP Acc Dep MACRS Acc Dep Difference Tax Rate
2005 22174 135984 113810 40%
2006 35924 247088 211164 40%
2007 49674 335178.6 285504.6 40%
2008 63424 405638.48 342214.48 40%
2009 77174 463402.66 386228.66 40%
2010 90924 512345.19 421421.19 40%
4 Deferred Tax Asset Schedule
Year Cumulative NOL Tax Rate DTA Change in DTA
2005 -169123 40% 67649.2 8260.2
2006 -160448 40% 64179.2 -3470
2007 -218130 40% 87252 23072.8
2008 -244646 40% 97858.4 10606.4
2009 -202756 40% 81102.4 -16756
2010 -97526 40% 39010.4 -42092
egan once the asset began production (in