Accounting Test II HW Answers

Accounting Test II HW Answers - Accounting Test I I HW...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

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

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

Unformatted text preview: Accounting Test I I HW Answers Ch 19 EXERCISE 19-4 (15–20 minutes) (a) Pretax financial income for 2010............................................ $ 80,000 Excess depreciation per tax return........................................ (16,000) Excess rent collected over rent earned................................. 27,000 Nondeductible fines................................................................. 11,000 Taxable income........................................................................ $102,000 Taxable income........................................................................ $102,000 Enacted tax rate....................................................................... 30% Income tax payable.................................................................. $ 30,600 EXERCISE 19-4 (Continued) (b) Income Tax Expense................................................. 27,300 Deferred Tax Asset.................................................... 8,100 Income Tax Payable........................................... 30,600 Deferred Tax Liability........................................ 4,800 Temporary Difference Future Taxable (Deductible) Amounts Tax Rate Deferred Tax (Asset) Liability Depreciation ( $ 16,000 30% $4,800 Unearned rent ( (27,000 ) 30% $(8,100 ) Totals $(11,000 ) $(8,100 ) $4,800 * *Because of a flat tax rate, these totals can be reconciled: $(11,000) X 30% = $(8,100) + $4,800. Deferred tax liability at the end of 2010................................. $ 4,800 Deferred tax liability at the beginning of 2010...................... Deferred tax expense for 2010 (increase required in deferred tax liability)........................................ $ 4,800 Deferred tax asset at the end of 2010.................................... $ ( 8,100 Deferred tax asset at the beginning of 2010......................... Deferred tax benefit for 2010 (increase required in deferred tax asset)...........................................$ (8,100 ) Deferred tax expense for 2010................................................ $ 4,800 Deferred tax benefit for 2010.................................................. (8,100 ) Net deferred tax benefit for 2010............................................ (3,300) Current tax expense for 2010 (Income tax payable)............ 30,600 Income tax expense for 2010.................................................. $27,300 (c) Income before income taxes................................. $80,000 Income tax expense Current............................................................. $30,600 Deferred........................................................... (3,300 ) 27,300 Net income............................................................... $52,700 Note : The details on the current/deferred tax expense may be presented in a note to the financial statements....
View Full Document

This note was uploaded on 09/07/2011 for the course BMGT 311 taught by Professor Staff during the Spring '08 term at Maryland.

Page1 / 36

Accounting Test II HW Answers - Accounting Test I I HW...

This preview shows document pages 1 - 3. Sign up to view the full document.

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