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7. The following information is available for Ryan Corporation: Assets at cost-$260,000; Accumulated depreciation-$80,000; Accumulated CCA-$90,000; meals and entertainment recorded in the books- $12,000; golf
7. The following information is available for Ryan Corporation: Assets at cost-$260,000; Accumulated depreciation-$80,000; Accumulated CCA-$90,000; meals and entertainment recorded in the books- $12,000; golf dues paid $5,000. Based on this information and a tax rate of 45%, what is the amount of the temporary difference? a. $0 b. $1,000 c. $4,000 d. $10,000 8. At the end of Year 1, ABC Inc.'s inventories were overstated by $10,000. At the end of Year 2 its inventories were overstated by $20,000. Assuming that ABC Inc. is subject to a 20% tax rate, the effect of these overstatements on the company's Year 2 Cost of Goods Sold would be an: Overstatement of $10,000. b. Overstatement of $20,000. Understatement of $10,000. d. Understatement of $20,000. a. C
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