答案和详解如下： 16.Unit Technologies uses accrual basis for financial reporting purposes and cash accounting for tax purposes. So far this year, Unit Technologies has recorded $195,000 in revenue for financial reporting purposes, but, on a cash basis, revenue was only $131,000. Assume expenses at 50 percent in both cases (i.e., $ 97,500 on accrual basis and $ 65,500 on cash basis), and a tax rate of 34 percent. What is the deferred tax liability or asset? A deferred tax: A) asset of $10,880. B) asset of $16,320. C) liability of $16,320. D) liability of $10,880. The correct answer was D) Since pretax income ($97,500) exceeds the taxable income ($65,500), United Technologies will have a deferred tax liability of $10,880 = [( $97,500 - $65,500)(0.34)]
17.A firm purchased a piece of equipment for $6,000 with the following information provided: §
Revenue will increase by $15,000 per year. §
The equipment has a 3-year life expectancy and no salvage value. §
The firm's tax rate is 30%. §
Straight-line depreciation is used for financial reporting and double declining balance is used for tax purposes. Calculate the incremental income tax expense for financial reporting for years 1 and 2.
A) $3,900 $3,900 B) $4,500 $4,500 C) $600 -$200 D) $3,300 $4,100 The correct answer was A) Using SL:
| Yr. 1 | Yr. 2 | Revenue | 15,000 | 15,000 | Dep. | 2,000 | 2,000 | Pretax income | 13,000 | 13,000 | Tax Expense | 3,900 | 3,900 |
18.A firm purchased a piece of equipment for $6,000 with the following information provided: §
Revenue will increase by $15,000 per year. §
The equipment has a 3-year life expectancy and no salvage value. §
The firm's tax rate is 30%. §
Straight-line depreciation is used for financial reporting and double declining is used for tax purposes. What will the firm report for deferred taxes on the balance sheet for years 1 and 2?
A) $600 $400 B) $3,900 $3,900 C) $4,500 $4,500 D) $3,300 $4,100 The correct answer was A) Using DDB:
| Yr. 1 | Yr. 2 | Revenue | 15,000 | 15,000 | Dep. | 4,000 | 1,333 | Taxable Inc | 11,000 | 13,667 | Taxes Pay | 3,300 | 4,100 |
Using SL:
| Yr. 1 | Yr. 2 | Revenue | 15,000 | 15,000 | Dep. | 2,000 | 2,000 | Pretax Inc | 13,000 | 13,000 | Tax Exp | 3,900 | 3,900 |
Deferred taxes year 1 = 3,900 – 3,300 = 600 Deferred taxes year 2 = 3,900 – 4,100 + previously deferred taxes = -200 + 600 = 400
19.An analyst gathered the following information about a company: §
Taxable income = $100,000 §
Pretax income = $120,000 §
Current tax rate = 20 % §
Tax rate when the reversal occurs will be 10 % What is the company's tax expense? A) $22,000. B) $24,000. C) $10,000. D) $12,000. The correct answer was A) Deferred tax liability = (120,000-100,000) * 0.1 = 2,000 Tax expense = current tax rate * taxable income + deferred tax liability 0.2 * 100,000 + 2,000 = 22,000
20.A company purchased a new pizza oven directly from Italy for $12,676. It will work for 5 years and has no salvage value. The tax rate is 41 percent, and annual revenues are constant at $7,192. For financial reporting, the straight-line depreciation method is used, but for tax purposes depreciation is accelerated to 35 percent in years 1 and 2, and 30.00 percent in year 3. For purposes of this exercise ignore all expenses other than depreciation. What is the tax payable for year one? A) $1,130. B) $1,909. C) $779. D) $1,626. The correct answer was A) Tax payable for year 1 will be $1,130 = [{$7,192 - ($12,676 x 0.35)} x 0.41] | 
发表于 2008-4-18 16:23
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