35 3 Answer (4). A corporation records a $7,000 unrealized gain due to an increase in the value of its short-term investments (FV-NI) at December 31, 2020. Unrealized gains on investments are not taxable for tax purposes until the investment is actually sold. At December 31, 2020, is this a temporary difference or a permanent difference? Is this gain an example of a deferred tax asset or a deferred tax liability? 36 37 Type of Difference Deferred Tax 38 A Temporary Asset 39 B. Permanent Liability 40 C. Temporary Liability 41 D. Permanent Asset #14 Answer (5). What is the difference between the direct method used for the Statement of Cash Flows and the indirect mother? A Cover Sheet Q1 Q2 Q3 PART A Q3 PART B 04 05 06 + culation Mode: Automatic Workbook Statistics DOLL 2010 hings The Corcove backed to you the 151 50 (6). In 2019 and 2020, Rosebud Ltd, showed a long-term bank loan of $50,000 on its statement of financial position. During 2020, Rosebud repaid $50,000 to the bank and obtained a new bank loan for $50,000 with better interest rates. On its statement of cash flows (SCF), Rosebud showed no cash transactions. Which of the 51 following is correct? 52 A. Cash payments of $50,000 should be shown as a separate line item on the SCF. B. Cash payments of $50,000 and cash proceeds of $50,000 on Issuance of a new bank loan should 3 be shown as two separate line items on the SCF. C Cash proceeds of $50,000 on issuance of a new bank loan should be shown as a separate line item on the SCF D. There is no error. Rosebud Ltd. prepared the change in bank loan correctly on its statement of cash flows. #6 Answer: 4 01 A Cover Sheet 04 05 06 + Q2 Q3 PART A Q3 PART B Wation Mode: Automatic Workbook Statistics or on the web pag Settings. These ton cous bed services are provided to you under the Microsoft Services Agreement E F G H "se the following information to answer questions 8 - 9: u, Controller of Moira Co. are preparing the statement of cash flows following IFRS. The company the policy of classifying dividends received as investing activities. The following T-Account with Ecriptions concerns the company's long-term investment in Wigs Ltd. over which it has had nificant influence since 2010. Investment in Wigs Ltd. Balance, Jan. 1/20 375,000 Investment income 15,000 5,000 Dividend received Balance, Dec. 31/20 385,000 entify how the $5,000 dividend received from Wigs Ltd. will be shown on Moira Co.'s Statement of Cash A. This is a non-cash transaction that is to be reported as a note. A Cover Sheet 01 Q2 Q3 PART A Q3 PART B Q4 Q5 Q6 + Se: Automatic Workbook Statistics come Sergs. These are vice provided to your the Moon srces et SI G (8). Identity how the 55,000 dividend received from Wigs Ltd. will be shown on Moira Co.'s Statement of Cash 74 Flows: A. This is a non-cash transaction that is to be reported as a note B. As a cash inflow under operating activities. C. As a cash inflow under investing activities. D. As non-cash deduction from net income under operating activities. 79 75 76 77 78 #8 Answer 80 31 (9). Identify how the investment income of $15,000 will be shown on Moira Co.'s Statement of Cash Flows: 2 A. As a cash inflow under investing activites. B. As a non-cash deduction from net income under operating activities. C. No impact to the statement as investment income is classified as other comprehensive income. D. As a cash inflow under operating activities. 3 #9 Answer Q1 = A Cover Sheet 02 Q3 PART A Q3 PART B Q4 Q5 Q6 + | Karin Statistics