Chapter+18+9th+Ed.+Part+3+Solutions

Chapter+18+9th+Ed.+Part+3+Solutions - EXERCISE 18-27(15-20...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
EXERCISE 18-27 (15-20 minutes) (a) Holding Loss on FV-OCI Securities Shares (OCI). ............................. 28,000 Investments in Securities (FV-OCI). .......... 28,000 Future Income Tax Asset. .................................. 10,640 Future Income Tax Benefit (OCI). .............. 10,640 [($28,000 X 38%) – $0] (b) Investments in Securities (FV-OCI). .................. 33,500 Holding Gain on FV-OCI Securities Shares (OCI). ................ 33,500 ($28,000 + $5,500) Future Income Tax Expense (OCI). .................... 12,730 Future Income Tax Asset. ........................... 10,640 Future Income Tax Liability. ....................... 2,090 ($5,500 X 38%) Balance, Dec. 31, 2012: ($5,500 X 38%) $(2,090) L Balance before adjustment 10,640 A Adjustment to balance sheet and 2012 expense $12,730 (c) Hang Technologies Inc. Statement of Comprehensive Income Year Ended December 31,
Background image of page 1

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

View Full DocumentRight Arrow Icon
2012 2011 Net income $100,000 $100,000 Other comprehensive income Holding gains (losses) on FV-OCI 33,500 ($28,000) investments Less: future income tax (expense) benefit (12,730) 10,640 Other comprehensive income (loss) 20,770 (17,360) Comprehensive income $120,770 $82,640
Background image of page 2
PROBLEM 18-8 (a) 2010 balances with mixed tax rates: Future Taxes Future taxable amounts: 2011 2012 2013 Total CCA vs. depreciation ($17,500) ($12,500) ($2,000) ($32,000) Tax rate enacted for the year 30%
Background image of page 3

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

View Full DocumentRight Arrow Icon
29% 28% Future tax liability ($5,250) ($3,625) ($560) ($9,435) Future deductible amounts 2011 2012
Background image of page 4
2013 Total Accrued pension liability 11,000 11,000 12,600 34,600 Tax rate enacted for the year 30% 29% 28% Future tax asset $ 3,300 $ 3,190 $ 3,528
Background image of page 5

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

View Full DocumentRight Arrow Icon
$ 10,018
Background image of page 6
PROBLEM 18-8 (Continued) (a) (continued) Balance D e d u ct ib le Future (PE GAAP) Sheet ( T a x a bl e) Tax Current Account Carrying Tax T e m p o r a r y Tax Asset or Long- Dec. 31, 2010 Amount Basis D if Rate (Liability) Term
Background image of page 7

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

View Full DocumentRight Arrow Icon
fe r e n c e s Property, plant, & equipment $125,000 $93,000 ( $ 3 2 , 0 0 0 ) Mixed ($9,435) (1) LT Warranty Liability 18,500 0 1 8 , 5 0 0 30% 5,550 C Pension Liability 34,600 0 3 4 , 6 0 Mixed 10,018 (1) LT
Background image of page 8
0 Future income tax asset, December 31, 2010 $6,133 (1) from table above Balance sheet classification: Non-current assets: Future income tax asset $6,133 ($5,550 + $10,018 – $9,435) IFRS require that all deferred tax assets and liabilities be reported as non-current items on a classified statement of financial position.
Background image of page 9

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

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/02/2011 for the course ACCT 352 taught by Professor Freeman during the Summer '11 term at Windsor.

Page1 / 22

Chapter+18+9th+Ed.+Part+3+Solutions - EXERCISE 18-27(15-20...

This preview shows document pages 1 - 10. Sign up to view the full document.

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