A. Assets=420; Liab= 100; O.E.= 80

Find the potential tax liability.

B. Assets (current value)= 1,000; book value= 550

Liab(current value)= 400; book value= 675

Tax rate=.23

Find the potential tax liab.

C. Life Insur. Policy: face value=1,200

Premiums paid in= 250

Cash surrend value=900

Loan due= 290

What value is shown on the bal. sheet

D .True or false: Interim statements ARE audited

E. Qtr 1 income = 6500; tax recognized= 2525

Qtr 2 income= 8,000; tax recog= 2100

Qtr income= 9,000 ; tax recog= 1800

Qtr 4 income= 27,000

Tax rate = .40

Find tax recognition for Qtr 4

Page 2

For questions F-I use the translation method to determine which rate to use: Average, Current, Historical or Mixed

F. equipment G. service revenue H. preferred stock

I. salaries payable

Now use the remeasurement method to determine the rate for items J, K,L and M:

J. unearned revenue K. land L . COGS M. rent expense

N. if a direct quote is .29, find the indirect quote .

O. if an indirect quote is .57 , find the direct quote.