ACC 373 Midterm Exam 2011 student - Intermediate Accounting...

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

View Full Document Right Arrow Icon
Intermediate Accounting III ACC 373 Midterm Take Home Exam Due: Friday, February 18 at 11:59 P.M. Name: ___________________________________ Date: ______________ 1. 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? I. A revenue is deferred for financial reporting purposes but not for tax purposes. II. A revenue is deferred for tax purposes but not for financial reporting purposes. III. An expense is deferred for financial reporting purposes but not for tax purposes. IV. An expense is deferred for tax purposes but not for financial reporting purposes. A) item II only B) items I and II only C) items II and III only D) items I and IV only 2. The percentage-of-completion method must be used when certain conditions exist. Which of the following is not one of those necessary conditions? A) Estimates of progress toward completion, revenues, and costs are reasonably dependable. B) The contractor can be expected to perform the contractual obligation. C) The buyer can be expected to satisfy some of the obligations under the contract. D) The contract clearly specifies the enforceable rights of the parties, the consideration to be exchanged, and the manner and terms of settlement. 3. Stuart Corporation's taxable income differed from its accounting income computed for this past year. An item that would create a permanent difference in accounting and taxable incomes for Stuart would be A) a balance in the Unearned Rent account at year end. B) using accelerated depreciation for tax purposes and straight-line depreciation for book purposes. C) a fine resulting from violations of OSHA regulations. D) making installment sales during the year.
Background image of page 1

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

View Full DocumentRight Arrow Icon
4. Horner Corporation has a deferred tax asset at December 31, 2011 of $80,000 due to the recognition of potential tax benefits of an operating loss carryforward. The enacted tax rates are as follows: 40% for 2008–2010; 35% for 2011; and 30% for 2012 and thereafter. Assuming that management expects that only 50% of the related benefits will actually be realized, a valuation account should be established in the amount of: A) $40,000 B) $16,000 C) $14,000 D) $12,000 5. The following information is related to the pension plan of Long, Inc. for 2011. Actual return on plan assets $200,000 Amortization of net gain 82,500 Amortization of prior service cost due to increase in benefits 150,000 Expected return on plan assets 230,000 Interest on projected benefit obligation 362,500 Service cost 800,000 Pension expense for 2011 is A) $1,195,000. B) $1,165,000. C) $1,030,000. D) $1,000,000. 6. Uncertain tax positions I. Are positions for which the tax authorities may disallow a deduction in whole or in part. II. Include instances in which the tax law is clear and in which the company believes
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/30/2011 for the course ACCOUNTING 655 taught by Professor Lee during the Spring '11 term at Prince George's Community College, Largo.

Page1 / 19

ACC 373 Midterm Exam 2011 student - Intermediate Accounting...

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