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.
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%.
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)
Q13. What is the deferred tax liability as of the end of year one?
A) $1,129.
B) $780.
C) $1,909
Q14. What is the deferred tax liability as of the end of year three?
A) $1,029.
B) $780.
C) $2,079.
[此贴子已经被作者于2009-1-19 10:45:15编辑过] | 
发表于 2009-1-19 10:45
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