【正文】 solve for PV = 923. Question ID: 15016 Which of the following statements about bonds issued at a discount is FALSE? A. Interest expense will equal the cash paid plus the amortization of the discount. B. Cash flow from operations will be overstated and cash flow from financing will be understated. C. The original liability will be higher than the bond39。s enacted ine tax rate is 30 percent. In its 2020 ine statement, what amount should Pick report as current provision for ine tax expense? A. $120,000 B. $102,000 C. $90,000 D. $132,000 C Question ID: 24677 Camphor Associates uses accrual basis for financial reporting purposes and cash basis for tax purposes. Cash collections from customers is $238,000, and accrued revenue is only $188,000 . Assume expenses at 50 percent in both cases (., $ 119,000 on cash basis and $ 94,000 on accrual basis), and a tax rate of 34 percent. What would be the deferred tax asset/liability in this case? A deferred tax: A. liability of $8,500. B. asset of $48,960. C. asset of $8,500. D. liability of $48,960. C 15 Since taxable ine ($119,000) exceeds pretax ine ($94,000), Camphor will have a deferred tax asset of $8,500 = [($119,000 $94,000)(.34)]. Question ID: 24675 United Technologies uses accrual basis for financial reporting purposes and cash accounting for tax purposes. So far this year, United Technologies has recorded $195,000 in revenue for financial reporting purposes, but, on a cash basis, revenue was only $131,000. Assume expenses at 50 percent in both cases (., $ 97,500 on accrual basis and $ 65,500 on cash basis), and a tax rate of 34 percent. What is the deferred tax liability or asset? A deferred tax: A. liability of $10,880. B. asset of $16,320. C. asset of $10,880. D. liability of $16,320. A Since pretax ine ($97,500) exceeds the taxable ine ($65,500), United Technologies will have a deferred tax liability of $10,880 = [( $97,500 $65,500)(.34)] Setup Text: An analyst has gathered the following tax information: Year 1 ??????????? ???????????Year 2 Pretax Ine ?? ???????????$60,000 $60,000 Taxable Ine ? 50,000 ?? 65,000 The current tax rate is 40 percent. Assume the tax rate is reduced to 30 percent and the change is enacted at the beginning of Year 2. Question ID: 24727 Taxes payable in Year 1 are: A. $18,000. 16 B. $20,000. C. $15,000. D. $24,000. B Taxes Payable = Taxable Ine * Current Tax Rate = $50,000 * 40%= $20,000. The taxes payable will be based on the current tax rate of 40%. Question ID: 24727 What is the deferred tax liability in Year 1? A. C. $ 2,000. B. B. $1,500. C. D. $4,000. D. A. $3,000. D Deferred Tax Liability = (Pretax Ine Taxable Ine) * 30% = ($60,000 50,000) * 30% = $3,000. SFAS 109 requires adjustments to deferred tax assets and liabilities to reflect the impact of a change in tax rates or tax laws. Question ID: 24727 Total Ine Tax Expense for Year 1 is: A. C. $18,000. B. B. $17,000. C. D. $24,000. 17 D. A. $23,000. D Total Ine Tax Expense = Taxes Payable Deferred Tax Asset + Deferred Tax Liability = $20,000 0 + 3,000 = $23,000. Question ID: 14986 Year: 1998 1999 2020 Ine Statement: Revenues after all expenses other than depreciation $200 $300 $400 Depreciation expense 50 50 50 Ine before ine taxes $150 $250 $350 Tax return: Taxable ine before depreciation expense $200 $300 $400 Depreciation expense 75 50 25 Taxable ine $125 $250 $375 Assume an ine tax rate of 40 percent The pany39。 1 10: Investment Tools: Financial Statement Analysis: Liabilities : Analysis of Ine Taxes Question ID: 24692 Which of the following statements is TRUE? Ine tax expense: A. and ine tax paid are similar. B. is the reported of deferred tax assets and liabilities. C. is the amount of taxes due to the government. D. includes taxes payable and deferred ine tax expense. D Ine tax expense is defined as expense resulting from current period pretax ine. It includes taxes payable and deferred ine tax expense. Ine tax paid is the actual cash flow for ine taxes, including payments or refunds for other years and may differ from ine tax expense. Taxes payable are the amount of taxes due the government. Question ID: 24690 Which of the following statements is a CORRECT description of valuation allowance? Reserve: A. created when deferred tax assets are greater than deferred tax liabilities. B. against deferred tax liabilities based on the likelihood that those liabilities will be paid. C. against deferred tax assets based on the likelihood that those assets will be realized. D. created when deferred tax liabilities are greater than deferred tax assets. C Valuation allowance is a reserve against deferred tax assets based on the likelihood that those assets will be realized. Deferred tax assets reflect the difference in tax expense and taxes payable that are expected to be recovered from future operations. 2 Question ID: 24686 A tax loss carryforward is the: A. taxable loss that can be used to refund paid taxes from the previous year. B. difference of deferred tax liabilities and deferred tax assets. C. taxable loss that can be used to reduce taxable ine in the future. D. difference of taxes payable and ine tax paid. C difference of taxes payable and ine tax paid. Question ID: 24688 The difference in ine tax expense and taxes payable is a: A. deferred tax asset. B. deferred ine tax expense. C. timing difference. D. deferred tax liability. B Taxes payable is defined as the taxes due the government as determined by taxable ine and the tax rate, while ine tax expense is the amount actually recognized on the balance