Q34. A firm is purchasing a new file server for $680,000, with a 4-year expected life and a salvage value of $50,000. It is expected that the new server will generate an additional $200,000 in revenue each year. The firm will use the straight line method to depreciate the server for financial reporting, but the sum-of-year’s digits (SYD) method for tax purposes. The tax rate is 35%. What will be the accumulated deferred tax liability at the end of the second year? A) $33,075.
B) $11,025. C) $44,100.
Q35. Corcoran Corp acquired an asset on 1 January 2004, for $500,000. For financial reporting, Corcoran will depreciate the asset using the straight-line method over a 10-year period with no salvage value. For tax purposes the asset will be depreciated straight line for five years and Corcoran’s effective tax rate is 30%. Corcoran’s deferred tax liability for 2004 will: A) increase by $15,000. B) decrease by $50,000. C) decrease by $15,000.
Q36. Nespa, Inc., has a deferred tax liability on its balance sheet in the amount of $25 million. A change in tax laws has increased future tax rates for Nespa. The impact of this increase in tax rate will be: A) an increase in deferred tax liability and an increase in tax expense. B) a decrease in deferred tax liability and a decrease in tax expense. C) a decrease in deferred tax liability and an increase in tax expense.
| 
发表于 2009-1-19 10:56
| 
