Sample FInal

Sample FInal - Intermediate Accounting II Fall 2010 Final...

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Unformatted text preview: Intermediate Accounting II Fall 2010 Final Exam Name: __________________________ Date: _____________ Use the following to answer questions 1-2. Mitchell Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2011 $ 900,000 Tax exempt interest (75,000) Originating temporary difference (225,000 ) Taxable income $600,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2011 is 35%. 1. What amount should be reported in its 2011 income statement as the deferred portion of income tax expense? A) $90,000 debit B) $120,000 debit C) $90,000 credit D) $105,000 credit 2. In Mitchell's 2011 income statement, what amount should be reported for total income tax expense? A) $330,000 B) $315,000 C) $300,000 D) $210,000 Page 1 Use the following to answer questions 3-4. The following information for Cooper Enterprises is given below: December 31, 2011 Assets and obligations Plan assets (at fair value) $100,000 Accumulated benefit obligation 185,000 Projected benefit obligation 200,000 Other Items Pension asset / liability, January 1, 2011 5,000 Contributions 60,000 Accumulated other comprehensive loss 83,950 There were no actuarial gains or losses at January 1, 2011. The average remaining service life of employees is 10 years. 3. What is the pension expense that Cooper Enterprises should report for 2011? A) $76,050 B) $110,000 C) $60,000 D) $83,950 4. What is the amount that Cooper Enterprises should report as its pension liability on its balance sheet as of December 31, 2011?...
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.

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Sample FInal - Intermediate Accounting II Fall 2010 Final...

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