4. Tacksizkule Corporation is an accrual-based business that uses the calendar year as its fiscal year. The company has net income before tax of $265,000. For each item, state (1) how much income or deduction the company should recognize for tax purposes in 2020, (2) the amount of any book-tax difference, (3) whether the book-tax difference is permanent or temporary, and (4) whether it created a net deferred tax asset/reduced a tax deferred liability (+DTA/-DTL.) or created a net deferred tax liability/reduced a deferred tax asset (UDTL-DTA). The appropriate tax rate is 25 percent. The company has elected to accelerate compensation accruals, but not to follow the recurring item exception if applicable. A. In August 2020, the company collects as the beneficiary S50,000 of life insurance proceeds because the CFO passed away in early 2020. B. Actual bad-debt write-offs for the year total $61,000. Using the aging receivables method under U.S. GAAP, the allowance for bad debts account increased $43,000 during the year. C. At the end of 2020, the company's board approves a one-time bonus of $75,000 in total to five key employees and accrues the bonus for book purposes. By March 15, 2021, unrelated party employees have received $20,000 in bonuses and related party employees have received $40,000 in bonuses. By September 15, 2021, unrelated party employees have received a total of $25,000 in bonuses and related party employees have received a total of $50,000 in bonuses. D. On September 1, 2019, the company received S108,000 in cash to perform services at a constant rate for three years beginning on October 1, 2019. MacBook Air 4. Tacksizkule Corporation is an accrual-based business that uses the calendar year as its fiscal year. The company has net income before tax of $265,000. For each item, state (1) how much income or deduction the company should recognize for tax purposes in 2020, (2) the amount of any book-tax difference, (3) whether the book-tax difference is permanent or temporary, and (4) whether it created a net deferred tax asset/reduced a tax deferred liability (+DTA/-DTL.) or created a net deferred tax liability/reduced a deferred tax asset (UDTL-DTA). The appropriate tax rate is 25 percent. The company has elected to accelerate compensation accruals, but not to follow the recurring item exception if applicable. A. In August 2020, the company collects as the beneficiary S50,000 of life insurance proceeds because the CFO passed away in early 2020. B. Actual bad-debt write-offs for the year total $61,000. Using the aging receivables method under U.S. GAAP, the allowance for bad debts account increased $43,000 during the year. C. At the end of 2020, the company's board approves a one-time bonus of $75,000 in total to five key employees and accrues the bonus for book purposes. By March 15, 2021, unrelated party employees have received $20,000 in bonuses and related party employees have received $40,000 in bonuses. By September 15, 2021, unrelated party employees have received a total of $25,000 in bonuses and related party employees have received a total of $50,000 in bonuses. D. On September 1, 2019, the company received S108,000 in cash to perform services at a constant rate for three years beginning on October 1, 2019. MacBook Air
