Q15. 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.
Q16. 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) not make any adjustments until it is certain that the tax benefits will not be realized. B) reverse the asset account permanently by $2,000,000. C) reduce the asset by establishing a valuation allowance of $2,000,000 against the asset.
Q17. 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. What is the tax payable for year one?
A) $779. B) $1,909. C) $2,259.
Q18. What is the deferred tax liability as of the end of year one?
A) $1,909. B) $1,559. C) $1,129.
Q19. What is the deferred tax liability as of the end of year three?
A) $780. B) $4,158. C) $1,029.
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发表于 2009-1-19 10:46
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