答案和详解如下： 1.Kemper Company purchased 100,000 shares of Able, Inc. on January 2, 2004 for $50 per share. The securities were classified as available for sale investments, and were Kemper’s only investment security. On December 31, 2004 the securities were valued at $75 per share. Kemper’s tax rate was 40 percent. On its 2004 financial statements Kemper did not list the unrealized gain on its income statement but reported an adjustment to shareholder’s equity. Kemper should report its potential tax liability relating to the Able, Inc. securities by: A) recording deferred tax liability of $1,000,000. B) recording taxes payable of $1,000,000. C) recording a deferred tax adjustment decrease of $1,000,000 in shareholders equity. D) making no recording until a realization event occurs. The correct answer was C) Available for sale securities’ market value changes are reported as adjustments to shareholder’s equity. The taxes that would be payable are recorded as an offset to this unrealized gain adjustment.
2.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 percent, 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 percent in years 1 and 2 and 30 percent in Year 3. For purposes of this exercise ignore all expenses other than depreciation. What is the tax payable for year one? A) $2,259. B) $779. C) $1,909. D) $1,626. The correct answer was A) Tax payable for year one will be $2,259 = [{$14,384 - ($25,352 * 0.35)} * 0.41].
3.What is the deferred tax liability as of the end of year one? A) $1,909. B) $1,559. C) $1,129. D) $320. The correct answer was B) The deferred tax liability for year 1 will be $780.
Pretax Income = $9,314 ( $14,384 - $5,070).
Taxable Income = $5,511 ($14,384 - $8,873).
Deferred Tax liability = $1,559 [($9,314 - $5,511)(0.41)].
4.What is the deferred tax liability as of the end of year three? A) $780. B) $4,158. C) $1,029. D) $1,909. The correct answer was B) The deferred tax liability at the end of year 3 will be $4,158 ($1,559 + $1,559 + $1,040).
Pretax Income = $9,314 = ( $14,384 - $5,070).
Taxable Income = $6,778 = [$14,384 - ($25,352 * 0.30)].
Deferred Tax liability for year 3 = $1,040 = [($9,314 - $6,778)(0.41)]. Deferred Tax liability for year 1 = $1,559 = [($9,314 - $5,511)(0.41)].
Deferred Tax liability for year 2 = $1,559 = [($9,314 - $5,511)(0.41)].
5.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) 37.50%. C) 40.00%. D) 68.75%. The correct answer was B) Pretax income, $80,000 Taxes payable, 30,000 Tax expense, 25,000 Alternative ETR (taxes payable/pretax income) 30,000/80,000 = 0.375 or 37.5%
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发表于 2008-4-18 15:13
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