Fav2chp4-9 - 71 CHAPTER 4 Problem 4-1 1 C 6 B 2 A 7 A 3 D 8 B 4 D 9 A 5 A 10 D Problem 4-2 1 Income tax expense 525,000 Income tax payable(35 x

Info iconThis preview shows pages 1–5. 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

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: 71 CHAPTER 4 Problem 4-1 1. C 6. B 2. A 7. A 3. D 8. B 4. D 9. A 5. A 10. D Problem 4-2 1. Income tax expense 525,000 Income tax payable (35% x 1,500,000) 525,000 2. Income tax expense 175,000 Deferred tax liability (35% x 500,000) 175,000 3. Income tax payable 200,000 Cash 200,000 Current tax expense 525,000 Deferred tax expense 175,000 Total income tax expense 700,000 Problem 4-3 1. Income tax expense 1,400,000 Income tax payable (35% x 4,000,000) 1,400,000 2. Deferred tax asset 350,000 Income tax benefit (35% x 1,000,000) 350,000 3. Income tax payable 500,000 Cash 500,000 Current tax expense 1,400,000 Income tax benefit ( 350,000) Total income tax expense 1,050,000 72 Problem 4-4 2008 1. Income tax expense 2,450,000 Income tax payable (35% x 7,000,000) 2,450,000 2. Deferred tax asset 350,000 Income tax benefit (35% x 1,000,000) 350,000 Income statement presentation Income before income tax 6,000,000 Income tax expense: Current tax expense 2,450,000 Income tax benefit ( 350,000) 2,100,000 Net income 3,900,000 2009 1. Income tax expense 2,800,000 Income tax payable (35% x 8,000,000) 2,800,000 2. Income tax expense 350,000 Deferred tax asset 350,000 Income statement presentation Income before income tax 9,000,000 Income tax expense: Current tax expense 2,800,000 Decrease in deferred tax asset 350,000 3,150,000 Net income 5,850,000 Problem 4-5 2008 1. Income tax expense 1,750,000 Income tax payable (35% x 5,000,000) 1,750,000 2. Income tax expense 175,000 Deferred tax liability (35% x 500,000) 175,000 73 Income statement presentation Income before income tax 5,500,000 Income tax expense: Current tax expense 1,750,000 Deferred tax expense 175,000 1,925,000 Net income 3,575,000 2009 1. Income tax expense 2,625,000 Income tax payable (35% x 7,500,000) 2,625,000 2. Deferred tax liability 175,000 Income tax expense 175,000 Income statement presentation Income before income tax 7,000,000 Income tax expense: Current tax expense 2,625,000 Decrease in deferred tax liability ( 175,000) 2,450,000 Net income 4,550,000 Problem 4-6 Accounting income 4,000,000 Permanent differences: Nondeductible expenses 200,000 Nontaxable revenue ( 300,000 ) Accounting income subject to tax 3,900,000 Taxable temporary differences: Deferred income ( 450,000) Excess tax depreciation ( 50,000) Deductible temporary differences: Doubtful accounts 100,000 Estimated warranty cost 100,000 Taxable income 3,600,000...
View Full Document

This note was uploaded on 03/17/2012 for the course BSA 102 taught by Professor Lim during the Spring '12 term at Baylor College of Dentistry.

Page1 / 122

Fav2chp4-9 - 71 CHAPTER 4 Problem 4-1 1 C 6 B 2 A 7 A 3 D 8 B 4 D 9 A 5 A 10 D Problem 4-2 1 Income tax expense 525,000 Income tax payable(35 x

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