1) Figure out the 2014 comprehensive income statement

find the Deferred Tax Liability for 2013 and 2014

and Income Taxes Payable 2014

Information:

pretax accounting income: $20,000, includes depreciation of 19,000 and $1000 meal and entertainment expense.

Gain on sale of land for 5,000 recognized equally in 2013 and 2014 as cash proceeds received.

Allowance for doubtful account start of 2014 1200 and the account shows credits for 3500 relating to the increase in the general provision and debits of 1500 relating to specific debts deductible for 2014

basis for tax for fixed assets at start of 2014 was 30,000 below net book value.

2014 tax return depreciation of 26,000 was allowed.

company had a deferred tax element of 3200 relating to 8000 underfunded pension obligation at the start of the year. company is allowed to deduct contributions to pension plan per year. pension contributions were 7500 and pension expense of 11,000. AOCI had a debt balance of 4500 at the start of the year. recorded acturial losses of 2000 and amortized 800 of losses included in pension expense.

January 2013 qualified stock options to execuatives for 20,000 shares @ $6 per share within 5 years of grant date. options valued at 1.80 per share allocated over 3 years for compensastion expense. company will not receieve tax deduction for qualified stock options.

2013 tax return showed tax loss carry forward of 5000.

existing tax rate for 2013 and 2014 is 40%. new tax rate of 30% will be enacted in 2015.

Anaheim is a small public company that is required to file only a current year income statement and a comparative balance sheet. It operates only in Nevada and does not pay state tax. At the end of the 2013 year, there was no tax payable to the IRS and no provisional tax payments for the current year have been made. Anaheim Co.'s 2014 income statement reflects a 20,000 pretax accounting income. This included depreciation of 19,000, total meal and entertainment expenses of 1,000, and the matters described below. Additional information: A gain on sale of some land for 5,000 was recognized in the 2013 income statement. For tax this gain is recognized equally in the 2013 and 2014 tax years as the cash proceeds are received. At the start of the 2014 year, the allowance for doubtful accounts account had a balance of 1, 200. The account showed credits of 3, 500 relating to the increase in the general provision and debits of 1, 500 relating to specific debts written off which will be deductible for tax in 2014. The basis for tax for the fixed assets at the start of the year was 30,000 below the net book value per the financial statements. In its 2014 tax return tax depreciation of 26,000 was allowed. The company had a deferred tax asset element of 3, 200 relating to its 8,000 underfunded pension obligation at the start of the year. The company is allowed to deduct its contribution to the pension plan for tax each year. Its pension expense and adjustments to other comprehensive income relating to pensions are not currently deductible/taxable but will be in the future when they are funded. The company's worksheet shows pension contributions of 7, 500 and pension expense of 11,000. Accumulated other comprehensive income at the start of the year had a debit balance of 4, 500. During the year the company recorded actuarial losses of 2,000 and amortized 800 of losses to the income statement that is included in pension expense... In January 2013 the company granted qualified stock options to executives. Under the terms of the options, the executives may purchase 20,000 shares in the company at a price of $6 a share any time within five years from the date of grant. At the date of grant the options were valued at $1.80 an option and the compensation expense is being allocated over the three year service period. The company will never receive a tax deduction for these qualified stock options. The company's 2013 tax return showed a tax loss carry forward of 5,000. No valuation allowance was deemed necessary. The tax loss was scheduled to expire in 2033 but will be used in 2014 if possible. The existing tax rate in 2013 and 2014 was 40% for all types of income. A new tax rate of 30% for 2015 and beyond was enacted in 2014