Question 56 Given the following data regarding two firms under different scenarios, determine the amount of any deferred tax liability or asset. Firm 1: Tax Reporting | Financial Reporting | Revenue | $500,000 | Revenue | $500,000 | Depreciation | $100,000 | Depreciation | $50,000 | Taxable income | $400,000 | Pretax income | $450,000 | Taxes payable | $160,000 | Tax expense | $180,000 | Net income | $240,000 | Net income | $270,000 | | | | | |
Firm 2: Tax Reporting | Financial Reporting | Revenue | $500,000 | Revenue | $500,000 | Warranty expense | $0
| Warranty expense | $10,000 | Taxable income | $500,000 | Pretax income | $490,000 | Taxes payable | $200,000
| Tax expense | $196,000 | Net income | $300,000 | Net income | $294,000 | | | | | |
Firm 1 Deferred Tax: Firm 2 Deferred Tax: A) $20,000 Liability $4,000 Asset B) $30,000 Asset $6,000 Asset C) $30,000 Liability $4,000 Liability D) $20,000 Asset $6,000 Liability Question 57 Camden Company’s appliance inventory transactions in the past year were as follows: ♣ Beginning inventory of 40 appliances at $600 each. ♣ Purchased 80 appliances on April 15 at $625 each. ♣ Purchased 100 appliances on August 7 at $650 each. ♣ Sold 160 appliances on October 8. ♣ Purchased 120 appliances on December 31 at $675 each.
Using the average cost method, Camden’s cost of goods sold for the year is closest to: A) $101,090. B) $103,530. C) $100,000. D) $107,000.
Question 58 A firm using straight-line depreciation reports: ♣ Gross investment in fixed assets of $87 million ♣ Accumulated depreciation of $48 million ♣ Annual depreciation expense of $3 million The approximate age of the fixed asset is: A) 2 years. B) 29 years. C) 9 years. D) 16 years.
Question 59 To raise funds for its expansion, Hanna Inc. issued four somewhat unconventional debt instruments in an effort to minimize its borrowing costs. In general, which of the following debt instruments is least likely to minimize Hanna’s interest expense compared to a conventional corporate bond? A) Debt denominated in a foreign currency. B) Convertible debt. C) Bonds with warrants attached. D) Exchangeable debt.
Question 60 Which of the following best describes a ratio that measures a firm’s ability to acquire long-term assets with cash flows from operations, and a performance ratio, respectively? Acquire assets with CFO Performance ratio A) Reinvestment ratio Debt payment ratio B) Reinvestment ratio Cash-to-income ratio C) Investing and financing ratio Cash-to-income ratio D) Investing and financing ratio Debt payment ratio
| 
发表于 2008-11-6 18:00
| 
[quote][/quote]