All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
AI Study Help
New
Search
Search
Sign In
Register
study help
business
accounting
Questions and Answers of
Accounting
An intangible asset cost $300,000 on January 1, 2011. On January 1, 2012, the asset was evaluated to determine whether it was impaired. As of January 1, 2012, the asset was expected to generate
Largest Company acquired Large Company on January 1. As part of the acquisition, $10,000 in goodwill was recognized; this goodwill was assigned to Largest's Production reporting unit. During the
On December 31, 2011, Debenham Corporation sold for $15,000 an old machine having an original cost of $84,000 and a book value of $9,000. The terms of the sale were as follows: $3,000 down payment,
On April 1, 2011, Brandoni Company has a piece of machinery with a cost of $100,000 and accumulated depreciation of $75,000. On April 1, Brandoni decided to sell the machine within one year. As of
Assume that Coaltown Corporation has a machine that cost $52,000, has a book value of $35,000, and has a market value of $40,000. The machine is used in Coaltown’s manufacturing process. For each
On January 2, 2011, Joshon Hardware Company traded with a dealer an old delivery truck for a newer model. Data relative to the old and new trucks follow:Old truck:Original cost . . . . . . . . . . .
Feng Company purchased a machine for $180,000 on September 1, 2011. It is estimated that the machine will have a 10-year life and a salvage value of $18,000. Its working hours and production in units
Rocky Point Foundry purchased factory equipment on March 15, 2010. The equipment will be depreciated for financial purposes over its estimated useful life, counting the year of acquisition as a
Olympus Equipment Company purchased a new piece of factory equipment on May 1, 2011, for $29,200. For income tax purposes, the equipment is classified as a 7-year asset. Because this is similar to
A delivery truck was acquired by Navarro Inc. for $40,000 on January 1, 2011. The truck was estimated to have a 3-year life and a trade-in value at the end of that time of $10,000. The following
On January 1, 2008, Ron Shelley purchased a new tractor to use on his farm. The tractor cost $100,000. Ron also had the dealer install a front-end loader on the tractor. The cost of the front-end
A company buys a machine for $61,700 on January 1, 2008. The maintenance costs for the years 2008–2011 are as follows: 2008, $4,900; 2009, $4,700; 2010, $12,400 (includes $7,800 for cost of a new
Lyell Company started a newspaper delivery business on January 1, 2008. On that date, the company purchased a small pickup truck for $14,000. Lyell planned to depreciate the truck over three years
Wright Manufacturing Co. acquired 20 similar machines at the beginning of 2006 for a total cost of $75,000. The machines have an average life of five years and no residual value. The group
Machines are acquired by Milestone Corporation on April 1, 2011, as follows:Instructions:1. Calculate the group depreciation rate for this group.2. Calculate the average life in years for the
The following independent cases describe facts concerning the ownership of racing bicycles.(a) Piero Niccolo, winner of the 2009 Milan–San Remo cycling classic, purchased a new Fierro bicycle for
Roscoe Corp. was organized on January 2, 2011. It was authorized to issue 74,000 shares of common stock. On the date of organization, it sold 20,000 shares at $50 per share and gave the remaining
In 2007, Heslop Mining Company purchased property with natural resources for $5,400,000. The property was relatively close to a large city and had an expected residual value of $700,000. The
In 2006, Sunbeam Corporation acquired a silver mine in eastern Alaska. Because the mine is located deep in the Alaskan frontier, Sunbeam was able to acquire the mine for the low price of $50,000. In
The following independent situations describe facts concerning the ownership of various assets.(a) Dickenton Company purchased a tooling machine in 1996 for $85,000. The machine was being depreciated
Oakeson Company is a manufacturing firm. Work-in-process and finished goods inventories for December 31, 2011, and December 31, 2010, follow:Depreciation is a major portion of Oakesons
Deedle Company purchased four convenience store buildings on January 1, 2005, for a total of $26,000,000. The buildings have been depreciated using the straight-line method with a 20-year useful life
JJS Corporation purchased a building on January 1, 2007, for a total of $12,000,000. The building has been depreciated using the straight-line method with a 20-year useful life and no residual value.
On January 3, 2003, Merris Company spent $89,000 to apply for and obtain a patent on a newly developed product. The patent had an estimated useful life of 10 years. At the beginning of 2007, the
On December 31, 2010, Magily Company acquired the following three intangible assets:(a) A trademark for $30,000. The trademark has seven years remaining in its legal life. It is anticipated that the
A review of the books of Lakeshore Electric Co. disclosed that there were five transactions involving gains and losses on the exchange of fixed assets. The transactions were recorded as indicated in
Wild Expansion Co. acquired the following assets in exchange for various nonmonetary assets. 2011Mar. 15 Acquired from another company a large lathe in exchange for three small lathes. The small
Information pertaining to Hedlund Corporation's property, plant, and equipment for 2011 follows.The salvage values of the depreciable assets are immaterial. Depreciation is computed to the nearest
At December 31, 2010, Oteron Company's noncurrent operating asset and accumulated depreciation and amortization accounts had balances as follows:Depreciation is computed to the nearest month. The
1. In January 2011, Vorst Co. purchased a mineral mine for $2,820,000 with removable ore estimated at 1,200,000 tons. After it has extracted all the ore, Vorst believes it will be able to sell the
The following two depreciation methods are acceptable for tax purposes:(a) Straight line with a half-year convention. The half-year convention is the assumption that all assets are acquired in the
The managements of two different companies argue that because of specific conditions in their companies, recording depreciation expense should be suspended for 2011. Evaluate carefully their
Ferris Bueller, Inc., owns a building in Des Moines, Iowa, that was built at a cost of $5,000,000 in 2000. The building was used as a manufacturing facility from 2001 to 2010. However, economic
Atwater Manufacturing Company purchased a new machine especially built to perform one particular function on the assembly line. A difference of opinion has arisen as to the method of depreciation to
In today’s high-tech, high-cost entertainment industry, motion pictures often have costs in the tens of millions of dollars. Of course, it is hoped that these movies will be box office winners and
Professor Linda DeAngelo found evidence suggesting that when the management of a company is ousted under fire, the new management tends to take an earnings “bath” after gaining control. A
Different airlines depreciate the same airplanes but using different useful-life and residual value assumptions. For example, airlines have depreciated the same Boeing aircraft over lives ranging
Locate the 2007 financial statements for The Walt Disney Company on the Internet and consider the following questions:1. What depreciation method does Disney use for its parks, resorts, and other
The following information is from the June 30, 1998, balance sheet for Delta Air Lines (all dollar amounts are in millions):Delta also included this note to its financial statements:Depreciation and
The following data come from the 2007 financial statements of Ford Motor Company:1. Estimate the book value of property and equipment disposed of during 2007.2. Assume that a half-year's
The FASB frequently receives recommendations about areas it should consider for study. Depreciation accounting has not been addressed as a separate topic by the FASB, and several alternative methods
To help you become familiar with the accounting standards, this case is designed to take you to the FASB’s Web site and have you access various publications. Access the FASB’s Web site at
You and your partner own a small data-entry company. You contract with businesses to manually enter data, such as library card catalogs and medical records, into a computer database. Your most
Accounting methods used by a company to determine income for financial reporting purposes frequently differ from those used to determine taxable income. What is the justification for these
Distinguish between a nondeductible expense and a temporary difference that results in a taxable income greater than pretax financial income reported in the income statement.
Distinguish between taxable temporary differences and deductible temporary differences, and give at least two examples of each type.
One possibility for reporting income tax expense in the income statement for a given year is to merely report the amount of income tax payable in that year. What is wrong with this approach?
What are the major advantages of the asset and liability method?
What is a drawback of the asset and liability method?
Describe how a change in enacted future tax rates is accounted for under the asset and liability method.
When is a valuation allowance necessary?
How does the FASB define the probability term “more likely than not” in Statement No. 109 ?
What are the sources of income through which the tax benefit of a deferred tax asset can be realized?
In applying the net operating loss carryback and carryforward provisions, what order of application is followed for federal tax purposes?
How is the classification of assets arising from NOL carryforwards determined under FASB Statement No. 109 ?
Under what conditions would scheduling the temporary difference reversals be required under Statement No. 109 ?
How would you define “uncertain” tax position?
What are the two steps that are required in determining the amount of tax benefit to be recognized in association with an uncertain tax position?
Why would FIN 48 require interest and penalties to be accrued on liabilities associated with unrecognized tax benefits?
What was the most significant change in accounting for income tax carryforwards made by Statement No. 109 ?
How do changes in the balances of deferred income taxes affect the amount of cash paid for income taxes?
If a company experiences a current operating loss, it may carry the loss backward and forward. What impact do these carrybacks and carryforwards have on the reported operating loss? On the statement
What rules govern the netting of deferred tax assets and deferred tax liabilities?
In the past, why was accounting for income taxes not as significant an issue in some foreign countries as it is in the United States?
In 1996, the IASB revised IAS 12. Did that revision make the international standard for deferred tax accounting more or less similar to the U.S. standard?
Briefly describe the partial recognition approach to accounting for deferred income taxes.
The company had sales for the year of $200,000. Expenses (except for income taxes) for the year totaled $170,000. Of this $170,000 in expenses, $12,000 is bad debt expense. The tax rules applicable
The company reported pretax financial income in its income statement of $50,000. Among the items included in the computation of pretax financial income were the following:Interest revenue from
On January 1, the company purchased investment securities for $1,000. The securities are classified as trading. By December 31, the securities had a fair value of $1,800 but had not yet been sold.
On January 1, 2011, the company purchased a piece of equipment for $75,000. The equipment has a 5-year useful life and $0 residual value. The company uses straightline depreciation for financial
Refer to Practice 16–4. Assume that the income tax rate is 35% for the current year but that the enacted tax rate for all future years is 42%. Prepare the journal entry or entries necessary to
Refer to Practice 16–5. Assume that on January 1, 2013, Congress changes the enacted tax rate. Make the journal entry necessary to record this tax rate change on January 1, 2013, assuming that(1)
On January 1, the company purchased investment securities for $1,000. The securities are classified as trading. By December 31, the securities had a fair value of $100 but had not yet been sold.
The company started business on January 1 and had revenues of $60,000 for the year. In addition to income tax expense, the company’s only other expenses are as follows:Bad debt expense of $10,000.
On January 1, the company purchased investment securities for $2,000. The securities are classified as trading. By December 31, the securities had a fair value of $4,200 but had not yet been sold.
On January 1, the company purchased investment securities for $1,000. The securities are classified as trading. By December 31, the securities had a fair value of $700 but had not yet been sold. On
Refer to Practice 16–8. The company had no taxable income in past years. Analysis of prospects for the future indicates that it is more likely than not that total taxable income in the foreseeable
Refer to Practice 16–9. The company had no taxable income in past years. Analysis of prospects for the future indicates that it is more likely than not that total taxable income in the foreseeable
The company has taken a tax position that is subject to review by the Internal Revenue Service. The company determines that there is a 40% probability that the position will not be sustained upon
The company has determined that there is an 80% likelihood that its position on a tax issue will be upheld upon review by taxing authorities and that the entire amount of the position, $100,000, will
The company is evaluating its tax position on a certain issue and has determined that although it is more likely than not that its position will be sustained, it is less certain about the amount that
Taxable income and income tax rates for 20092011 for the company have been as follows:Make the journal entry necessary to record any net operating loss (NOL) carryback in2011.
Refer to Practice 16–17. Assume that the net operating loss in 2011 was $150,000 instead of $80,000. Make the journal entry necessary to record(1) Any net operating loss (NOL) carryback in 2011
Taxable income and income tax rates for 2009–2014 for the company have been as follows:Make the journal entry necessary to record any net operating loss (NOL) carryforward created in 2014. The
Refer to Practice 16–5. Assume that the enacted tax rates are as follows:2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40%2012 . .
Refer to Practice 16–11. (1) What deferred tax amount or amounts would appear on the balance sheet? (2) Prepare the financial statement note disclosure needed to identify the sources of the
Refer to Practice 16–3. Compute the effective tax rate.From Practice 16-3Interest revenue from municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000Nondeductible
The company reported sales of $60,000. Other income statement items for the year were as follows:Interest revenue from municipal bonds . . . . . . . . . . . . . . . . . . . . . $ 7,000Depreciation
The company assembled the following information with respect to operating cash flow for the year:Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The company reported the following balance sheet information:Total income tax expense for 2011 was $60,000. Compute the amount of cash paid for income taxes in2011.
Indicate which of the following items are temporary differences and which are nontaxable or nondeductible. For each temporary difference, indicate whether the item considered alone would create a
Using the information given in Exercise 16–26 and assuming pretax financial income of $3,100,000, calculate taxable income.
Faro Inc. began operating on January 1, 2011. At the end of the first year of operations, Faro reported $400,000 income before income taxes on its income statement but only $320,000 taxable income on
The company had sales for the year of $100,000. Of these sales, only $70,000 was collected in cash. The other $30,000 is expected to be collected in cash next year. For this business, the tax rules
Lofthouse Machinery Co. includes a 2-year warranty on its machinery sales. At the end of 2011, an analysis of the warranty records reveals an accumulated temporary difference of $120,000 for warranty
Fulton Company computed a pretax financial loss of $15,000 for the first year of its operations ended December 31, 2011. This loss did not include $25,000 in unearned rent revenue that was recognized
Relevan Company computed a pretax financial loss of $15,000 for the first year of its operations ended December 31, 2011. Included in the loss was $42,000 in uncollectible accounts expense that was
Goshute Company computed pretax financial income of $50,000 for the year ended December 31, 2011. Taxable income for the year was $15,000. Accumulated temporary differences as of December 31, 2010,
Hinton Exploration Company reported pretax financial income of $621,000 for the calendar year 2011. Included in the Other Income section of the income statement was $98,000 of interest revenue from
Pro-Tech-Tronics Company computed pretax financial income of $35,000 for the first year of its operations ended December 31, 2011. Unearned rent revenue of $55,000 had been recognized as taxable
Showing 15700 - 15800
of 107832
First
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
Last