Additional Information

Site Information

 Loading... Please wait...

ACC 302 ACC302 ACC/302 Unit 3 Seminar

$4.99

Product Description

ACC 302 Unit 3 Seminar (Kaplan)

Eckert Corporation's partial income statement after its first year of operations is as follows:

Income before income taxes

                                   $3,750,000

Income tax expense

 

     Current      
     Deferred

$1,035,000 
       90,000                   1,125,000

Net income

                                    $2,625,000


 
Eckert uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was $1,500,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 30% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year?

At the beginning of 2010; Elephant, Inc. had a deferred tax asset of $4,000 and a deferred tax liability of $6,000. Pre-tax accounting income for 2010 was $300,000 and the enacted tax rate is 40%. The following items are included in Elephant’s pre-tax income:

Interest income from government obligations

             $24,000    

Accrued warranty costs, estimated to be paid in 2011

             $52,000

Operating loss carryforward

             $38,000

Installment sales revenue, will be collected in 2011

             $26,000

Prepaid rent expense, will be used in 2011

             $12,000


 
Which of the following is required to adjust Elephant, Inc.’s deferred tax asset to its correct balance at December 31, 2010?

Munoz Corp.'s books showed pretax financial income of $1,500,000 for the year ended December 31, 2011. In the computation of income taxes, the following data were considered:

Gain on an involuntary conversion (Munoz has elected to replace the property within the statutory period using total proceeds.)

   $650,000

Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes

    100,000

Estimated tax payments, 2011

    125,000

Enacted tax rate, 2011

        30%


 
What amount should Munoz report as its current income tax liability on its December 31, 2011 Balance Sheet?

Which of the following will not result in a temporary difference?

Horner Corporation has a deferred tax asset at December 31, 2015 of $160,000 due to the recognition of potential tax benefits of an operating loss carryforward. The enacted tax rates are as follows: 40% for 2012–2014; 35% for 2015; and 30% for 2016 and thereafter. Assuming that management expects that only 50% of the related benefits will actually be realized, a valuation account should be established in the amount of:

Find Similar Products by Category

Click the button below to add the ACC 302 ACC302 ACC/302 Unit 3 Seminar to your wish list.