5. For the year ended December 31, Year 1, Health Company reported a $300,000 warranty expense in its income statement. The expense was based on actual waranty costs of $60,000 in Year 1 and expected warranty costs of $70,000 in Year 2, $80,000 in d taxes should be based on a a. $240,000 taxable temporary difference. $300,000 deductible temporary difference $300,000 taxabte temporary difference $240,000 deductible temporary difference. d. George Corporation declared a cash dividend of $10,000 on January 17. This dividend was payable to shareholders of record on February 10, and payment was made on March 2. As a result of this cash dividend, working capital will increase (decrease) by what amount on 6. January 12 a. $0 b. $(10,000) c. $10,000 d. $(10,000) February 10 s0 $0 $0 $10,000 Lidiot Co. commenced its existence on January 1 of the current year. Its articles of incorporation authorize the issuance of 1 million shares of $10 par value common stock On February 1, it issued 200,000 shares for $2.5 million. On April 30, 8,000 shares were issued to a management consultant in exchange for services rendered. These services had a fair value of $120,000. On November 1, Lidiot issued 40,000 shares for a plant site when the fair value of the stock was $17.50 per share. Assuming that the foregoing were the only transactions affecting the paid-in capital accounts in the first year of Lidiot's operations, what was the balance of additional paid-in capital at year end? 7. a. $840,000 b. $800,000 c. $540,000 d. $500,000