单选题
In the first year of operation, a firm produces taxable income of -
$30000. The prevailing tax rate is 30%. The firm's balance sheet will report a
deferred tax:
单选题
An analyst gathered the following information about a
company: ●Taxable income is $63000. ●Pretax
income is $72000. ●Current tax rate is 40%.
●Tax rate when the reversal occurs will be 30%. What is the
company's deferred tax liability at the end of year 1?
单选题
An analyst is comparing a firm to its competitors. The firm has a
deferred tax liability" that results from accelerated depreciation for tax
purposes. The firm is expected to continue to grow in the foreseeable future.
How should the liability be treated for analysis purpose?
A. It should be treated as equity at its full value.
B. It should be treated as liability at its full value.
C. The present value should be treated as liability with the remainder being
treated as equity.
单选题
Which one of the following statement is most accurate?
Under the liability method of accounting for deferred taxes, a decrease
in the tax rate at the beginning of the period will:
单选题
The developer of a new software received $30000 advance from the
software firm. $8000 of income taxes were paid on the advance when received. The
software will not be finished until next year. Determine the tax basis of the
advance at the end of this year.
单选题
The following information relates to a profitable company that offers
a warranty on a new product introduced in 2009:
accrued warranty expenses for the warranty in 2009
$300000
actual expenditures for repairs under the warranty in 2009
$200000
If the company's tax rate is
35 percent, which of the following most accurately describes the deferred tax
recorded in 2009 with respect to the new product warranty?
单选题
A company reports net income of $80000 for the year. The table below
indicates selected items which were included in net income and their associated
tax status.
including in determi- ning net income
tax status
depreciation expense dividend income fine related to
environmental damage R&D expenditures
$70000 $120000 $100000 $50000
$90000 allowed for tax purposes dividends not taxable not
deductible for tax purposes $20000 allowed for tax purposes
The company's tax rate is 35%. The
company's current income taxes payable is closest to:
单选题
While reviewing a company, an analyst identifies a permanent
difference between taxable income and pretax income. Which of the following
statements most accurately identifies the appropriate financial adjustment?
A. The effective tax rate for calculating tax expenses should be
adjusted.
B. The amount of the tax implications of the difference should be added to
the deferred tax liabilities.
C. The present value of the amount of the tax implications of the difference
should be added to the deferred tax liabilities.
单选题
A firm reported the following: ●Gross DTA at the
beginning of the year
$23000 ●Gross DTA at the end of the year
$24500
●Valuation allowance at the beginning of the year
$4600 ●Valuation allowance at the end of the year
$6700 Which of the following
statements best describes the expected earnings of the firm? Earnings are
expected to:
A. Earnings are expected to increase.
B. Earnings are expected to decrease.
C. Earnings are expected to remain relatively stable.
单选题
At the beginning of the year, a company issues a $1000 face value,
semiannual coupon, bond with an 8 percent coupon rate maturing in 10 years. The
annual market rate of interest at issuance was 12 percent. The initial liability
recorded for this bond is closest to: