Group Assignment for Chapter 16 - Solutions.docx - By...

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By signing my name below, I affirm that I have not accepted or discussed and will not provide or discuss information about the contents of this assignment from, to, or with another student. Print Your Name Clearly :_______________________ Signature: _______________________ Print Your Section Number (e.g. T/TH 9 am or Sec. 006): ______________________________ Assignment 9 (Chapter 16) (Total Possible Points: 100) ACCT 351/551 Note : You can turn in either typed or handwritten homework. However , make sure the different problems and answers are clearly marked. If a multipart question, make sure it is clear which part the answer relates to. In addition, make sure to circle, highlight, or double underline your final answers. If you make it too difficult to find the answer within your work, I will not count the answer correct. If you have multiple answers, I will not count it correct even if one of the answers is correct. Staple multiple pages together and make sure your name is on each page. If pages come loose without a name, the grading will be only on what is left attached. Show your work throughout. If your answer is wrong and you do not show your work, then I cannot offer any partial credit. Round dollar amounts to the nearest cent ($3,500.0372 $3,500.04). Round percentages to the second decimal place (e.g. 35.027956% 35.03%). Throughout the problems, assume corporations are calendar year tax period, accrual method taxpayers. 1. ( 36 points total ) Assume the following businesses operate as corporations. For the year requested, determine the amount of book-tax difference, whether they are favorable or unfavorable, and whether they are permanent or temporary. ( 3 points for each dollar amount answer, 3 points for each favorable/unfavorable answer, and 3 points for each temporary/permanent answer ) Year of interes t Dollar amount Favorable or Unfavorabl e Temporary or Permanent On November 30, 2017, a restaurant ordered $2,000 of wines and cheeses from the Wine and Cheese Depot. The products were dropped off in the first week of December (2016). The bill was due by January 31, 2018. On December 15, 2017, the restaurant told the Depot them that the restaurant may only be able to pay $1,000 of the final bill in 2018 as a food inspector was threatening to close the business down unless they made costly changes to the restaurant building. The restaurant owners were not sure the restaurant could afford the changes but were 2017 $1,000 Tax deductio n = $0 Book expense = $1,000 Unfavorabl e Temporary 1
deliberating whether they could swing the costs to be able to keep their doors open. As a result, the Depot credited its allowance for doubtful accounts and debited bad debt

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