答案和详解如下： Q10. For the year ended 31 December 2004, Pick Co's pretax financial statement income was $400,000 and its taxable income was $300,000. The difference is due to the following: Interest on tax-exempt municipal bonds $140,000 Premium expense on key person life insurance $(40,000) Total $100,000 Pick's statutory income tax rate is 30 percent. In its 2004 income statement, what amount should Pick report as current provision for tax payable? A) $90,000. B) $102,000. C) $120,000. Correct answer is A) According to SFAS 109, Current provision = statutory rate × taxable income 30% = Taxes Payable / $300,000 = 0.30 × $300,000 = $90,000 Q11. The following tax data is associated with a firm: - Income tax expense of $25,000.
- Income taxes payable of $30,000.
- Pretax income of $80,000.
- 40% tax bracket.
What is this firm’s alternative effective tax rate? A) 31.25%. B) 40.00%. C) 37.50%. Correct answer is C) Alternative ETR = (taxes payable / pretax income) = 30,000 / 80,000 = 0.375 or 37.5%. Q12. 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%, 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% in years 1 and 2, and 30% in year 3. For purposes of this exercise ignore all expenses other than depreciation. What is the tax payable for year one? A) $1,909.
B) $779.
C) $1,130.
C) Correct answer is Tax payable for year 1 will be $1,130 = [{$7,192 − ($12,676 × 0.35)} × 0.41]
Q13. What is the deferred tax liability as of the end of year one?
A) $1,129.
B) $780.
C) $1,909
Correct answer is B) The deferred tax liability for year 1 will be $780.
Pretax Income = $4,657 = ( $7,192 − $2,535)
Taxable Income = $2,755 = ($7,192 − $4,437)
Deferred Tax liability = $780 = [($4,657 − $2,755)(0.41)] Alternative solution:
The difference in depreciation at the end of year one is $12,676 × (0.35 − 0.20) = $1901.
Deferred tax liability = difference in depreciation × tax rate = $1901 × 0.41 = $780. Q14. What is the deferred tax liability as of the end of year three?
A) $1,029.
B) $780.
C) $2,079.
Correct answer is C) The deferred tax liability at the end of year 3 will be $2,079 = ($780 + $780 + $519).
Pretax Income = $4,657( $7,192 − $2,535)
Taxable Income = $3,389[$7,192 − ($12,676 × 0.30)]
Deferred Tax liability for year 3 = $519[($4,657 − $3,389)(0.41)]
Deferred Tax liability for year 1 = $780[($4,657 − $2,755)(0.41)]
Deferred Tax liability for year 2 = $780[($4,657 − $2,755)(0.41)]
Alternative solution:
For tax purposes the machine is 100% depreciated out at the end of year three, while for GAAP it is only 60% depreciated.
The difference in depreciation is $12,676 × (1.00 − 0.60) = $5070.
Deferred tax liability = difference in depreciation × tax rate = $5070 × 0.41 = $2079. | 
发表于 2009-1-19 10:45
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