A warehouse lease payment of $9,600 through February 28, 2013. (The Prepaid Rent

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A warehouse lease payment of $9,600 through February 28, 2013. (The Prepaid Rent account is for advance lease payments on the warehouse.) $590 is owed to Northern Electric Co. and $270 is owed to City of Rockford for utility services provided during December 2012. Plant and equipment to be depreciated are composed of the following: Assets Date Acquired Cost Estimated Usage or Life Salvage Value Depreciation Method Building 7/1/06 $306,000 25 years $20,000 sum-of-the-years' digits Track No. 1 4/1/09 28,000 60,000 miles 3,100 miles driven Track No. 2 9/1/11 33,000 60,000 miles driven Lift No. 1 8/17/05 7,900 10 years 900 straight-line (Sold 12/31/12) Lift No. 2 3/29/09 4,500 10 years 500 straight-line Lift No. 3 9/16/10 5,000 10 years 500 straight-line Office All prior to 32,600 7 years 2,000 straight-line Equipment 1/1/12 Computer 12/22/12 6,100 5 years 1,300 Double-decling balance Truck No. 1 has been driven 45,000 miles prior to 1/1/12 and truck No. 2 has been drive en 30,500 miles prior to 1/1/12. During 2012 truck No. 1 was driven 15,000 miles and truck No. 2 was driven 12,000 miles. Remember that the Rockford Company takes a half-year's depreciation in the year of acquisition and a half-year in the year of sale. Complete the work sheet. In completing the worksheet, compute State of Illinois corporate income taxes at 4% of pretax income. The state income tax is deductible on the federal tax return, and the federal tax is not deductible on the Illinois return. Assume federal corporate income tax on income subject to federal tax is as follows: first $50,000 @15% next 25,000 @25% remainder @34%

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