Reading 38: Analysis of Income Taxes - LOS f ～ Q11-15

答案和详解如下：

11.A firm is purchasing a new file server for $680,000, with a 4-year expected life and a salvage value of $50,000. It is expected that the new server will generate an additional $200,000 in revenue each year. The firm will use the straight line method to depreciate the server for financial reporting, but the sum-of-year’s digits (SYD) method for tax purposes. The tax rate is 35 percent. What will be the accumulated deferred tax liability at the end of the second year?

A)   $11,025.

B)   $3,850.

C)   $44,100.

D)   $33,075.

The correct answer was C)

12.A firm is purchasing a new file server for $680,000 with a 4-year expected life and a salvage value of $50,000. It is expected that the new server will generate an additional $200,000 in revenue each year. The firm will use the straight line method to depreciate the server for financial reporting, but the sum-of-year’s digits (SYD) method for tax purposes. How much tax will be payable in year two, assuming a 35 percent tax rate?

A)   $3,850.

B)   -$1,400.

C)   $14,875

D)   $10,500

The correct answer was A)

Income for each year is expected to be $200,000. The second year’s depreciation will be ($680,000 – $50,000) × 0.3 = $189,000, so the taxable income will be $11,000 and the tax will be $11,000 × 0.35 = $3,850.

13.Kruger Associates uses an accrual basis for financial reporting purposes and cash basis for tax purposes. Cash collections from customers are $476,000, and accrued revenue is only $376,000. Assume expenses at 50 percent in both cases (i.e., $ 238,000 on cash basis and $ 188,000 on accrual basis), and a tax rate of 34 percent. What is the deferred tax asset or liability? A deferred tax:

A)   liability of $17,000.

B)   asset of $48,960.

C)   liability of $48,960.

D)   asset of $17,000.

The correct answer was D)

Since taxable income ($238,000) exceeds pretax income ($188,000), Kruger will have a deferred tax asset of $17,000 [($238,000 - $188,000)(0.34)].

14.This year, Blue Horizon has recorded $390,000 in revenue for financial reporting purposes, but, on a cash basis, revenue was only $262,000. Assume expenses at 50 percent in both cases (i.e., $ 195,000 on accrual basis and $ 131,000 on cash basis), and a tax rate of 34 percent. What is the deferred tax liability or asset? A deferred tax:

A)   asset of $21,760.

B)   asset of $16,320.

C)   liability of $16,320.

D)   liability of $21,760.

The correct answer was D)

Since pretax income ($195,000) exceeds the taxable income ($131,000), Blue Horizon will have a deferred tax liability of $21,760 [( $195,000 - $131,000)(0.34)].

15.Camphor Associates uses accrual basis for financial reporting purposes and cash basis for tax purposes. Cash collections from customers is $238,000, and accrued revenue is only $188,000 . Assume expenses at 50 percent in both cases (i.e., $119,000 on cash basis and $94,000 on accrual basis), and a tax rate of 34 percent. What is the deferred tax asset/liability in this case? A deferred tax:

A)   liability of $8,500.

B)   asset of $48,960.

C)   liability of $48,960.

D)   asset of $8,500.

The correct answer was D)

Since taxable income ($119,000) exceeds pretax income ($94,000), Camphor will have a deferred tax asset of $8,500 = [($119,000 - $94,000)(0.34)].