答案和详解如下： Q4. Bandhu Jayagopal and his wife, Padmini, are the founders and current owners of the Riverview Restaurant and Lounge. They retired several years ago from the day-to-day management, however, turning it over to a nephew, Mehmood Shah. Shah has run the restaurant very profitably, but recent redevelopment of the downtown riverfront area has brought new competition to the Riverview. Jayagopal’s 25 year old grandson, Jeff Patel, thinks the restaurant can leap ahead of the competition and attract a hipper crowd by turning the lounge into a nightclub. Patel wants to incorporate a new business and lease the restaurant lounge for his nightclub, the Red Monkey. Patel has consulted a contractor who says he can do the renovations for $25,352,000. Patel estimates that the new sound system and décor would be usable for five years before fashions changed enough that it would have to be replaced, at which point it would have no salvage value. Patel assures his grandfather and uncle that he could generate $14,384,000 in revenue every year once the renovations are complete. For their parts, Jayagopal and Shah are understandably leery of turning over the financial future of the family business to a 25 year old who wants to open a club. Since the new club would face the same 41% tax rate that the restaurant faces, Jayagopal and Shah are not sure that the cash flow from the club would be sufficient to cover the rapid depreciation of the fashionable décor. The fact that Patel also expects them to fund the new company for him doesn’t help. They say no. Patel returns to his uncle and grandfather armed with financial projections. Patel shows his hoped-for business partners that, if they use the straight-line method in reporting the club’s results, the Red Monkey will report $5,495,024 in after-tax income (ignoring expenses other than depreciation) in the first year. Jayagopal counters that straight-line depreciation is irrelevant because for tax purposes the depreciation schedule will be accelerated to 35% per year in each of the first two years and 30% in the third year. Jayagopal points out that after-tax income for the club in the first year will be only $3,251,372 on a tax basis (again ignoring expenses other than depreciation). Shah joins Jayagopal in his objections, adding that the accelerated depreciation schedule used for tax purposes will result in a substantial deferred tax liability, reaching approximately $4,158,000 by the end of year three. Patel replies that the deferred tax liability is merely an accounting entry and the Red Monkey will never have to pay any of it since the club will reinvest in up-to-date décor in five years when the current renovations are out of fashion. Patel adds that a change in the tax law to cut tax rates from 41% to 31% is likely in year three, and if that happens the deferred tax liability at the end of the third year will decline to $2.948 million. Jayagopal agrees about the likelihood of a tax cut, saying that such a cut in tax rates would add $1.014 million to the Red Monkey’s reported net income in year three. Jayagopal and Shah agree to fund the nightclub if the tax cut passes.
What would be the Red Monkey’s projected tax payable (in millions) in year one? A) $2.259. B) $1.909. C) $0.779. Correct answer is A)
On a tax basis, first-year depreciation will be ($25.352 million × 0.35) = $8,873,200.
Pre-tax income will be ($14,384,000 – $8,873,200) = $5,510,800.
At a 41% tax rate, tax payable in year one would be ($5,510,800 × 0.41) = $2.259 million. Q5. Regarding Patel’s and Jayagopal’s statements about the Red Monkey’s after-tax income in the first year, which is correct? Patel
Jayagopal
A) Incorrect Correct B) Correct Correct C) Correct Incorrect Correct answer is B) If the Red Monkey uses straight-line depreciation in its reported results, the annual depreciation expense on financial statements will be ($25.352 million / 5 years) = $5,070,400 per year. Pre-tax income (ignoring depreciation) will be ($14,384,000 revenue − $5,070,400 depreciation) = $9,313,600. At a 41% tax rate, reported income each year will equal ((1 – 0.41) × $9,313,600) = $5,495,024, ignoring expenses other than depreciation. Patel’s statement is correct. On a tax basis, first-year depreciation will be ($25.352 million × 0.35) = $8,873,200 and pre-tax income will be ($14,384,000 – $8,873,200) = $5,510,800, again ignoring expenses other than depreciation. At a 41% tax rate, the after-tax income of the Red Monkey will be [(1 – 0.41) × $5,510,800] = $3,251,372. Jayagopal’s statement is also correct. Q6. Which statement about an analyst’s treatment of deferred tax assets and liabilities is most accurate? A) Deferred tax assets that are unlikely to be reversed should be added to equity. B) Deferred tax liabilities that are unlikely to reverse should be treated as equity, without discounting. C) Deferred tax liabilities are unlikely to reverse should be discounted to present value and treated as liabilities. Correct answer is B) Deferred tax assets that are unlikely to be reversed should be subtracted from equity, not added to it. Deferred tax liabilities should be discounted to present value and treated as liabilities if they are likely, not unlikely, to reverse. If the deferred tax liability is unlikely to reverse, the difference between the reported value and present value is added to equity. | 
发表于 2009-1-19 11:02
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