Quiz%202B[1] - $ 332 (3 ) ($ in 000s) Current Future Year...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Quiz 2B 1. Answer: Calculation of the Present Value of Minimum Lease Payments 2.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
 3.  (1) ($ in 000s) Current Future Prior Years Year Deductible 2007 2008 2009 Amounts [total] Accounting loss (540) Non-temporary difference: Fine paid 20 Temporary differences: Loss contingency 40 (40) Taxable loss (480) Loss carryback (300) (120) 420 Loss carryforward 60 (60) 0 (100) Enacted tax rate 40% 40% 40% 40% Tax payable (refundable) (120) (48) 0 Deferred tax asset (40) Deferred tax asset: Ending balance (balance currently needed) $ 40 Less: beginning balance (0) Change needed to achieve desired balance $40 End of 2009 Receivable – income tax refund ($120 + 48) 168
Background image of page 2
Deferred tax asset (determined above) 40 Income tax benefit (to balance) 208 (2 ) ($ in 000s) Operating loss before income taxes $540 Less: Income tax benefit: Tax refund from loss carryback $168 Future tax benefits 40 208 Net operating loss
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $ 332 (3 ) ($ in 000s) Current Future Year Deductible 2010 Amounts Accounting income 240 Temporary differences: Loss contingency (40) Operating loss carryforward (60) Taxable income 140 Enacted tax rate 40% 40% Tax payable 56 Deferred tax asset Deferred tax asset: Ending balance (balance currently needed) $ Less: beginning balance (40) Change needed to achieve desired balance $(40) at the end of 2010 Income tax expense (to balance) 96 Deferred tax asset (determined above) 40 Income tax payable (determined above) 56 4. 5. 1. (250,000 5,000) 2 = 490,000 1.03 $1 = $504,700 + (5,000 treasury shares at $1) 2. $500,000 + [(490,000 3%) ($5 $1)] = $558,800 3. $2,000,000 (100,000 $9) [(250,000 5,000) $1] [(490,000 3%) $5] (504,700 $.50) + $500,000 = $1,029,150...
View Full Document

This note was uploaded on 05/11/2010 for the course 3241 1241 taught by Professor 51231 during the Spring '10 term at École Normale Supérieure.

Page1 / 5

Quiz%202B[1] - $ 332 (3 ) ($ in 000s) Current Future Year...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online