1.) MedAm Inc. is preparing its earnings per share disclosures. The accountants have calculated basic earnings per share and, while working on the diluted earnings per share, was calculating the incremental effect of each potential change in common shares outstanding. For one convertible bond issue (which was not converted to common shares), MedAm discovered that the incremental EPS effect for that particular bond was greater than the basic earnings per share. This is know as a(n)

A Dilutive security

B Anti-dilutive security

C Negative basic security

D Reverse dilutive security

E Anomalous security

2.) For ABC Corp, Pretax accounting income in FY 2019 is $3,700. Part of that is from municipal bond interest ($2,000 bond paying 8%). ABC chooses to consider real estate installments sales as taxable when payments are collected, per IRS code. Book depreciation was $ 425 but MACRS under the tax code is $ 615 for the year. The balance in the estimated warranty liability account declined by $ 330 during 2019. They collected $ 2,000 payments on installment note related to real estate sales while making $ 1,700 of real property sales on installment notes in 2019. The companys statutory tax rate is 30%; as of 1/1/2019 DTA had a 19 balance while DTL had a 124 balance. What is ABCs effective tax rate (in whole percentages)?

A 30%

B 26%

C 29%

D 33%

E Not enough information to determine effective tax rate

3.) For ABC Corp, Pretax accounting income in FY 2019 is $3,700. Part of that is from municipal bond interest ($2,000 bond paying 8%). ABC chooses to consider real estate installments sales as taxable when payments are collected, per IRS code. Book depreciation was $ 425 but MACRS under the tax code is $ 615 for the year. The balance in the estimated warranty liability account declined by $ 330 during 2019. They collected $ 2,000 payments on installment note related to real estate sales while making $ 1,700 of real property sales on installment notes in 2019. The companys statutory tax rate is 30%; as of 1/1/2019 DTA had a 19 balance while DTL had a 124 balance. In the Income tax journal entry, what is the entry for DTA?

A Credit $ 90

B Debit $ 90

C Credit $ 71

D Debit $ 71

E No entry for DTA in 2019

4.) For ABC Corp, Pretax accounting income in FY 2019 is $3,700. Part of that is from municipal bond interest ($2,000 bond paying 8%). ABC chooses to consider real estate installments sales as taxable when payments are collected, per IRS code. Book depreciation was $ 425 but MACRS under the tax code is $ 615 for the year. The balance in the estimated warranty liability account declined by $ 330 during 2019. They collected $ 2,000 payments on installment note related to real estate sales while making $ 1,700 of real property sales on installment notes in 2019. The companys statutory tax rate is 30%; as of 1/1/2019 DTA had a 19 balance while DTL had a 124 balance. What is ABC Corps balance in DTL as of 12/31/2019?

A $ 124

B $ 32

C $ 156

D $ 490

E $ 39

5.)

For ABC Corp, Pretax accounting income in FY 2019 is $3,700. Part of that is from municipal bond interest ($2,000 bond paying 8%). ABC chooses to consider real estate installments sales as taxable when payments are collected, per IRS code. Book depreciation was $ 425 but MACRS under the tax code is $ 615 for the year. The balance in the estimated warranty liability account declined by $ 330 during 2019. They collected $ 2,000 payments on installment note related to real estate sales while making $ 1,700 of real property sales on installment notes in 2019. The companys statutory tax rate is 30%; as of 1/1/2019 DTA had a 19 balance while DTL had a 124 balance. What is ABC Corps Taxes expense for 2019?

A $ 957

B $ 996

C $ 1,110

D $ 989

E $ 1,506