Ch 19 - Name Status Score Instructions Test Accounting for Income Taxes Stec Completed 180 out of 200 points Question 1 Multiple Choice 10 of 10

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Name: Test Accounting for Income Taxes --- Stec Status : Completed Score: 180 out of 200 points Instructions: Question 1 Multiple Choice 10 of 10 points Accounting for income taxes can result in the reporting of deferred taxes as any of the following except Selected Answer: a contra-asset account. Question 2 Multiple Choice 10 of 10 points Bennington Corporation began operations in 2004. There have been no permanent or temporary differences to account for since the inception of the business. The following data are available: In 2008, Bennington had an operating loss of $930,000. What amount of income tax benefits should be reported on the 2008 income statement due to this loss? Selected Answer: $409,500 Question 3 Multiple Choice 10 of 10 points For calendar year 2007, Neer Corp. reported depreciation of $1,200,000 in its income statement. On its 2007 income tax return, Neer reported depreciation of $1,800,000. Neer's income statement also included $225,000 accrued warranty expense that will be deducted for tax purposes when paid. Neer's enacted tax rates are 30% for 2007 and 2008, and 24% for 2009 and 2010. The depreciation difference and warranty expense will reverse over the next three years as follows: These were Neer's only temporary differences. In Neer's 2007 income statement, the deferred portion of its provision for income taxes should be Selected Answer: $101,700. Question 4 Multiple Choice 10 of 10 points Assuming a 40% statutory tax rate applies to all years involved, which of the following situations will give rise to reporting a deferred tax liability on the balance sheet? 1. A revenue is deferred for financial reporting purposes but not for tax purposes. 2. A revenue is deferred for tax purposes but not for financial reporting purposes.
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This note was uploaded on 09/21/2008 for the course ACC 203 taught by Professor Giansante during the Spring '08 term at Community College of Allegheny County.

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Ch 19 - Name Status Score Instructions Test Accounting for Income Taxes Stec Completed 180 out of 200 points Question 1 Multiple Choice 10 of 10

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