Problem 2
In 2010, its first year of operations, Kimble Corp. has a $900,000 net operating loss when the tax
rate is 30%. In 2011, Kimble has $360,000 taxable income and the tax rate remains 30%.
Instructions
Assume the management of Kimble Corp. thinks t
Problem 4
Montoya Company has available the following information about its defined-benefit pension
plan for the year ending December 31, 2011:
Service cost for 2011
$ 25,000
Accumulated benefit obligation
683,000
Plan assets at fair value
630,000
Accumul
Problem 3
In the blank to the left of each question, fill in the letter from the following list which best
describes the presentation of the item on the financial statements of Helton Corporation for 2011.
a.
b.
c.
d.
Change in estimate
Prior period adjus
Problem 1)
In 2010, its first year of operations, Kimble Corp. has a $900,000 net operating loss when the tax
rate is 30%. In 2011, Kimble has $360,000 taxable income and the tax rate remains 30%.
Instructions
Assume the management of Kimble Corp. thinks
