答案和详解如下： Q25. A dance club purchased new sound equipment for $25,352. It will work for 5 years and has no salvage value. Their tax rate is 41%, and their annual revenues are constant at $14,384. 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. Assume that the tax rate changes for years 4 and 5 from 41% to 31%. What will be the deferred tax liability as of the end of year three? A) $1,039. B) $3,144. C) $2,948. Correct answer is B) Straight-line depreciation = $25,352 / 5 = $5,070. Income using straight-line depreciation = $14,384 − $5,070 = $9,314. Accelerated depreciation (years 1 and 2) = 0.35($25,352) = $8,873. Income (years 1 and 2) = $14,384 − $8,873 = $5,511. Accelerated depreciation (year 3) = 0.3($25,352) = $7,606. Income (year 3) = $14,384 − $7,606 = $6,778. Deferred tax liability at the end of year three, after the change in the expected tax rate, will be $3,144: DTL for year 1 = $1,178.93 = [($9,314 − $5,511)(0.31)].
DTL for year 2 = $1,178.93 = [($9,314 − $5,511)(0.31)].
DTL for year 3 = $786.16 = [($9,314 − $6,778)(0.31)]
$1,178.93 + $1,178.93 + $786.16 = $3,144 Q26. Because the tax rate changes for years 4 and 5 from 41% to 31%, net income will have to be adjusted for financial reporting purposes in year three. What is the amount of this adjustment? A) $1,014. B) $1,030. C) $747. Correct answer is A)
The deferred tax liability will decrease by $1,014 = ($4,158 − $3,144) due to the new lower tax rate. An adjustment of $1,014 in tax expense will result in an increase in net income by the same amount of $1,014.
Deferred tax liability at the end of year 3 with tax rate of 41% = $4,158.
Deferred tax liability at the end of year 3 with tax rate of 31% = $3,144. Year ending 31 December: | 2002 | 2003 | 2004 | Income Statement: |
| Revenues after all expenses other than depreciation | $200 | $300 | $400 |
| Depreciation expense | 50 | 50 | 50 |
| Income before income taxes | $150 | $250 | $350 |
| Tax return: |
| Taxable income before depreciation expense | $200 | $300 | $400 |
| Depreciation expense | 75 | 50 | 25 |
| Taxable income | $125 | $250 | $375 |
Q27. Assume an income tax rate of 40% and zero deferred tax liability on 31 December 2001. The deferred tax liability to be shown in the 31 December 2003, balance sheet and the 31 December 2004 balance sheet, is: 2003 2004
A) $10 $0 B) $0 $10 C) $25 $20 Correct answer is A)
First, for 2003, remember that the deferred tax liability (DTL) is cumulative so, it includes the balance from prior years, (assume 2002 in this example since we have no other information). DTL cumulative = (tax return depreciation – financial statement depreciation) × tax rate + DTL from previous year § DTL for 2002: (75 – 50) × 0.4 + 0 = 10 § DTL for 2003: (50 – 50) × 0.4 + 10 = 10 § DTL for 2004: (25 – 50) × 0.4 + 10 = 0 Q28. 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% in both cases (i.e., $119,000 on cash basis and $94,000 on accrual basis), and a tax rate of 34%. What is the deferred tax asset/liability in this case? A deferred tax: A) asset of $8,500. B) asset of $48,960. C) liability of $8,500. Correct answer is A)
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)]. Q29. 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% in both cases (i.e., $195,000 on accrual basis and $131,000 on cash basis), and a tax rate of 34%. What is the deferred tax liability or asset? A deferred tax: A) liability of $16,320. B) liability of $21,760. C) asset of $21,760. Correct answer is B) 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)]. | 
发表于 2009-1-19 10:52
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