hmwk_ch12 - PRACTICE EXERCISES PE 121A Income Tax Expense...

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PRACTICE EXERCISES PE 12–1A Income Tax Expense. ............................................................. 189,000 Income Tax Payable. ........................................................ 168,000 Deferred Income Tax Payable. ........................................ 21,000 Income tax expense based on $540,000 reported income at 35%. .. $189,000 Income tax payable based on $480,000 taxable income at 35%. ..... 168,000 Income tax deferred to future years. ................................................... $ 21,000 PE 12–1B Income Tax Expense. ............................................................. 36,000 Income Tax Payable. ........................................................ 30,400 Deferred Income Tax Payable. ........................................ 5,600 Income tax expense based on $90,000 reported income at 40%. .... $ 36,000 Income tax payable based on $76,000 taxable income at 40%. ....... 30,400 Income tax deferred to future years. ................................................... $ 5,600 PE 12–2A Dec. 15 Loss on Fixed Asset Impairment. ....................... 46,000 Equipment. ....................................................... 46,000 Restructuring Charge. .......................................... 60,000* Employee Termination Obligation. ................ 60,000 *15 employees × $4,000
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PE 12–2B Dec. 23 Loss on Fixed Asset Impairment. ....................... 320,000 Land. ................................................................. 320,000 Restructuring Charge. .......................................... 405,000* Employee Termination Obligation. ................ 405,000 *45 employees × $9,000
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PE 12–3A Earnings per share: 240,000 * $270,000 000 , 430 , 2 $ - = $9.00 per share *30,000 shares × $100 par value × 9% = $270,000 PE 12–3B Earnings per share: 420,000 * $35,000 000 , 350 $ - = $0.75 per share *5,000 shares × $100 par value × 7% = $35,000 PE 12–4A a. $117,400 = $104,000 + $13,400 b. $669,000 = $565,000 + $104,000 c. $84,400 = $71,000 + $13,400 PE 12–4B a. $979,500 = $856,000 + $123,500 b. $4,316,000 = $3,460,000 + $856,000 c. $747,500 = $624,000 + $123,500
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PE 12–5A a. Initial cost. ........................................................................ $123,000 Unrealized gain ($137,000 – $123,000). ......................... $14,000 Less: Tax on unrealized gain ($14,000 × 40%). ............ 5,600 Unrealized gain, net of tax. ............................................ 8,400 Reported amount of marketable securities. ................. $131,400 b. Net income. ...................................................................... $151,000 Unrealized gain ($137,000 – $123,000). ......................... $14,000 Less: Tax on unrealized gain ($14,000 × 40%). ............ 5,600 Other comprehensive income, net of tax. .................... 8,400
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hmwk_ch12 - PRACTICE EXERCISES PE 121A Income Tax Expense...

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