1. How should future income tax liabilities/assets be presented on the balance statement? 2. As one net debitor credit amount b. As reductions of the related asset or liability accounts c. In two amounts: one for the net debit amount and one for the net credit amount d. In two amounts: one for the net current amount od one for the net non-current amount 2. MoyCo. at the end of 20x1, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows Pretax financial income $ 3.000.000 Advanced rentals 500,000 Installment sales 00000) Taxable income S33100 The gross profit from the installment sales will be realized next year. The advanced rentals of $500,000 will reverse equally over the next 2 years. The income tax rate is 30% for all years. a. The deferred tax liability to be recognized is a $15,000 b. $30,000 C $60.000 d. $90.000 b. The deferred tax asset--current to be recognized is a 50 b. $75,000 c. $60,000 d. $100,000 3. LCo.'s income statement for its first year of operations shows pretax income of $5,000,000. In addition, the following differences existed between Lion's tax return and records: Allowable for: TI Uncollectible accounts expanse $250.000 Depreciation expense 880,000 Allowable for: Uncollectible accounts expense Depreciation expense Accounting $280.000 590.000 Tax-exempt interest revenue--550,000 LCO's current year tax rate is 30% and the chacted rate for future years is 40%. What amount should Lion report as a net deferral in its income statement for the year? $148.000 b. $124.000 c. $104.000 d. $78,000 1. How should future income tax liabilities/assets be presented on the balance statement? a. As one net debit or credit amount b. As reductions of the related asset or liability accounts c. In two amounts: one for the net debit amount and one for the net credit amount d. In two amounts: one for the net current amount and one for the net non-current amount 2. MoyCo. at the end of 20x1, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 3,000,000 Advanced rentals 500,000 Installment sales (200,000) Taxable income $ 3,300,000 The gross profit from the installment sales will be realized next year. The advanced rentals of $500,000 will reverse equally over the next 2 years. The income tax rate is 30% for all years. a. The deferred tax liability to be recognized is a. $15,000 b. $30,000 c. $60,000. d. $90,000 b.The deferred tax assct--current to be recognized is a. SO b. $75,000 c. $60,000 d. $100,000 3. LCo.'s income statement for its first year of operations shows pretax income of $5,000,000. In addition, the following differences existed between Lion's tax return and records: Allowable for: Tax Uncollectible accounts expense $250,000 Depreciation expense 880,000 Allowable for: Uncollectible accounts expense Depreciation expense Accounting $280,000 590,000 Tax-exempt interest revenue - $50,000 LCo.'s current year tax rate is 30% and the enacted rate for future years is 40%. What amount should Lion report as a nct deferral in its income statement for the year? a. $148,000 b. S124,000 c. $104,000 d. $78,000
