1 Neasha Corporation reported the following results for its first three years of operation: 2009 income (before income taxes) $ 100,000 2010 loss (before income taxes) (900,000) 2011 income (before income taxes) $1,000,000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 30% for 2009 and 2010, and 40% for 2011. Assuming that Neasha elects to use the carryback provision, what income (loss) is reported in 2010? (Assume that any deferred tax asset recognized is more likely than not to be realized.) QUESTION 2 When there is a significant increase in the estimated total contract costs but the increase does not eliminate all profit on the contract, which of the following is correct? (Points: 10) A. Under both the percentage-of-completion and the completed-contract methods, the estimated cost increase requires a current period adjustment of excess gross profit recognized on the project in prior periods. B. Under the percentage-of-completion method only, the estimated cost increase requires a current period adjustment of excess gross profit recognized on the project in prior periods. C. Under the completed-contract method only, the estimated cost increase requires a current period adjustment of excess gross profit recognized on the project in prior periods. D. No current period adjustment is required. QUESTION 3 ) Which of the following is false regarding accounting for deferred taxes under iGAAP? (Points: 10) A. A deferred tax liability is classified as current or noncurrent based on the classification of the asset or liability to which it relates. B. A deferred tax asset is recognized up to the amount that is probable to be realized. C. Tax effects of certain items are recognized in equity. D. The rate used to compute deferred taxes is either the enacted tax rate, or a substantially enacted tax rate (virtually certain). QUESTION 4 A corporation has a defined-benefit plan. An accrued pension cost will result at the end of the first year if the A. Accumulated benefit obligation exceeds the fair value of the plan assets. B. Fair value of the plan assets exceeds the accumulated benefit obligation. C. Amount of employer contributions exceeds the net periodic pension cost. D. Amount of net periodic pension cost exceeds the amount of employer contributions. 5. Which of the following is true with regard to pension accounting under U.S. GAAP and iGAAP? A.Accounting for defined-benefit pensions is typically a less important issue in the U. S. than in other parts of the world. B. The accounting for defined-benefit pension plans is the same under U.S. GAAP and iGAAP. C. Prior service cost is recognized on the balance sheet under both U.S. GAAP and iGAAP. D. Prior service cost is amortized into income over the expected service lives of employees under both U.S. GAAP and iGAAP