[CFA入门] 请教一个L1的题 income, following, reported, class

annyyu

An analyst gathered the following data for Alice Company.

• Alice Company reported a pretax income of $400,000 in its income statement for the period ended December 31, 2002.

• Included in its pretax income are: (1) interest received on tax-free municipal bonds $50,000 and (2) rent expense of $20,000. (Only $10,000 was paid in cash for rent during 2002).

• Alice follows cash basis for tax reporting.

• Assume a tax rate of 40%.

Based on the information provided, which of the following is most accurate with respect to deferred tax during 2002? Deferred tax:

A)   liability will increase by $4,000.

B)   asset will increase by $4,000.

C)   will remain unchanged

 

 

为什么是deferred tax asset increase by $4,000? rent expense 不是应该从pretax income 中减去吗？多减掉$10，000那么就应该导致deferred tax liability 呀？为什么会是DTA呢？谢谢

jikehurry

rent expense是支出的 减少了net income 有节税作用

Only $10,000 was paid in cash for rent during 2002 （cash basis for tax reporting.）即cash outflow少10000 ，在net income基础上加回 作为税基

也就是说税基大于CV（cash inflow>net income) DTA产生

jikehurry

rent expense是支出的 减少了net income 有节税作用

Only $10,000 was paid in cash for rent during 2002 （cash basis for tax reporting.）即cash outflow少10000 ，在net income基础上加回 作为税基

也就是说税基大于CV（cash inflow>net income) DTA产生

annyyu

Thanks!

shuiy

The (1) interest received on tax-free municipal bonds $50,000 is the perminant difference, thus there is no liability or asset on this.

For (2), if Alice is a cash basis, I don't think there is any change, then C. But if Alice is a accural basis, here is the difference. The company accured the liability and record them as expense. On tax basis, only $10000 counts since tax = cash basis. So the accured expense for them will be recognized in the next year when paid out for tax purpose. Here comes the difference between GAAP and Tax, which is temporary. The differen on GAAP Financial Statement will be recognized as tax assets.