答案和详解如下： 1.Nespa, Inc., has a deferred tax liability on its balance sheet in the amount of $25 million. A change in tax laws has increased future tax rates for Nespa. The impact of this increase in tax rate will be: A) an increase in deferred tax liability and an increase in tax expense. B) a decrease in deferred tax liability and a decrease in tax expense. C) an increase in deferred tax liability and a decrease in tax expense. D) a decrease in deferred tax liability and an increase in tax expense. The correct answer was A) An increase in tax rates will increase future deferred tax liability, and the impact of the increase in liability will be reflected in the income statement of the year in which the tax rate change is effected.
2.A company purchased a new pizza oven directly from Italy for $12,675. 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 percent in year 3. For purposes of this exercise ignore all expenses other than depreciation. Assume the tax rate for years 4 and 5 changed from 41 percent to 31 percent. What will be the deferred tax liability as of the end of year 3 and the resulting adjustment to net income in year 3 for financial reporting purposes due to the change in the tax rate?
| Deferred Tax Liability | Net Income |
A) $1,572 $507 B) $1,572 $747 C) $1,039 $507 D) $1,039 $747 The correct answer was A) Straight-line depreciation is $12,675/5 = $2,535. Financial statement income is $7,192 - $2,535 = $4,657.
Accelerated depreciation is $12,675(0.35) = $4,436 in years 1 and 2 and $12,675(0.3) = $3,803 in year 3. Taxable income is $7,192 - $4,436 = $2,756 in years 1 and 2 and $7,192 - $3,803 = $3,389 in year 3. At the old tax rate of 41%:
Deferred Tax liability for year 1 = $779.41 [($4,657 - $2,756)(0.41)]
Deferred Tax liability for year 2 = $779.41 [($4,657 - $2,756)(0.41)]
Deferred Tax liability for year 3 = $519.88 [($4,657 - $3,389)(0.41)]
Deferred tax liability at the end of year 3, before the change in tax rate, is $2,079 = ($779.41 + $779.41 + $519.88) At the new tax rate of 31%:
Deferred Tax liability for year 1 = $589.31 [($4,657 - $2,756)(0.31)]
Deferred Tax liability for year 2 = $589.31 [($4,657 - $2,756)(0.31)]
Deferred Tax liability for year 3 = $393.08 [($4,657 - $3,389)(0.31)]
Deferred tax liability at the end of year 3, after the change in tax rate, will be $1,572 = ($589.31 + $589.31 + $393.08) The deferred tax liability will decrease by $507 = ($2,079 - $1,572) due to the new lower tax rate. An adjustment of $507 in tax expense will result in increase in net income by the same amount $507. Another way of answering this question is as follows: The deferred tax liability is the cost of the oven multiplied by the difference in the amount of depreciation at the end of year 3 between accelerated depreciation (100%) and straight line (60%) depreciation methods multiplied by the tax rate ((12,675 x .4) x .31 = $1,572). The change in net income due to the change in tax rates is the cost of the oven multiplied by the difference in the amount of depreciation at the end of year 3 multiplied by the difference in tax rates (12,675 x .4 x (.41 - .31) = 507).
3.An analyst has gathered the following tax information:
| Year 1 | Year 2 | Pretax Income | $60,000 | $60,000 | Taxable Income | $50,000 | $65,000 |
The current tax rate is 40 percent. Assume the tax rate is reduced to 30 percent and the change is enacted at the beginning of Year 2. In year 1, what are the taxes payable and what is the deferred tax liability?
| Taxes Payable | Deferred Tax Liability |
A) $20,000
$1,500 B) $20,000
$3,000 C) $24,000
$3,000 D) $24,000
$1,500 The correct answer was B) Taxes Payable = Taxable Income * Current Tax Rate = $50,000 * 40%= $20,000. The taxes payable will be based on the current tax rate of 40%.
Deferred Tax Liability = (Pretax Income - Taxable Income) * 30% = ($60,000 - 50,000) * 30% = $3,000.
SFAS 109 requires adjustments to deferred tax assets and liabilities to reflect the impact of a change in tax rates or tax laws.
4.Total income tax expense for Year 1 is: A) $17,000. B) $18,000. C) $24,000. D) $23,000. The correct answer was D) Total Income Tax Expense = Taxes Payable - Deferred Tax Asset + Deferred Tax Liability = $20,000 - 0 + 3,000 = $23,000.
5.Laser Tech has net temporary differences between tax and book income resulting in a deferred tax liability of $30.6 million. According to U.S. GAAP, an increase in the tax rate would have what impact on deferred taxes and net income, respectively:
A) Increase
No effect B) No effect No effect C) No effect Decrease D) Increase
Decrease The correct answer was D) If tax rates rise then deferred tax liabilities will also rise. The increase in deferred tax liabilities will increase the current tax expense, and if expenses are increasing the net income will decrease.
6.Graphics, Inc. has a deferred tax asset of $4,000,000 on its books. As of December 31, it became more likely than not that $2,000,000 of the asset’s value may never be realized because of the uncertainty of future income. Graphics, Inc. should: A) reverse the asset account permanently by $2,000,000. B) establish an offsetting deferred tax liability account of $2,000,000. C) reduce the asset by establishing a valuation allowance of $2,000,000 against the asset. D) not make any adjustments until it is certain that the tax benefits will not be realized. The correct answer was C) If it becomes more likely than not that deferred tax assets will not be fully realized, a valuation allowance that reduces the asset and also reduces income from continuing operations should be established. | 
发表于 2008-4-18 16:33
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