Answers: Questions: 1. A company with a DB plan achieves actual return of 8.5% when expected return was 8%. Benefits paid to retirees was $34,320. If beginning plan assets was $365,600 and ending plan assets was $395,600, cash contributions totaled 2. 3. For the current year, a company with a DB plan has service cost $113,010; benefits paid $75,340; and loss on PBO of $37,670. Assuming an ending PBO of $485,943 and interest rate of 9%, the beginning PBO balance was ABC reports the following year-end balances: deferred tax asset $68,600; deferred tax liability $49,000; valuation allowance $30,184. The year-end balance sheet will include a net deferred tax liability of For the year, ABC has taxable income $435,000. At year-end, ABC calculated an increase in a deferred tax asset of $36,250 and an increase in a deferred tax liability of $34,250. Assuming a tax rate of 25%, income tax expense is 4. 5. In 2020, ABC generated installment sales income of $32,000 (all on account). Cash is expected to be collected in the following years: in 2021, $4,000; in 2022, $16,000; and in 2023, $12,000. Assume a tax rate of 20% in 2020 and 30% beginning in 2023. The balance of the deferred tax account at the end of 2020 is 6. ABC has pretax accounting income $104,000. During the year, ABC paid a fine of $3,120 that is nondeductible for tax purposes. At the end of the year, ABC collected $15,600 from a tenant for rental of a building next year. Assume a tax rate of 35%. The year-end balance of the related deferred tax account is 7. ABC has pretax accounting income $104,000. During the year, ABC paid a fine of $3,120 that is nondeductible for tax purposes. At the end of the year, ABC collected $15,600 from a tenant for rental of a building next year. Assume a tax rate of 35%. Taxable income is Answers: Questions: 1. A company with a DB plan achieves actual return of 8.5% when expected return was 8%. Benefits paid to retirees was $34,320. If beginning plan assets was $365,600 and ending plan assets was $395,600, cash contributions totaled 2. 3. For the current year, a company with a DB plan has service cost $113,010; benefits paid $75,340; and loss on PBO of $37,670. Assuming an ending PBO of $485,943 and interest rate of 9%, the beginning PBO balance was ABC reports the following year-end balances: deferred tax asset $68,600; deferred tax liability $49,000; valuation allowance $30,184. The year-end balance sheet will include a net deferred tax liability of For the year, ABC has taxable income $435,000. At year-end, ABC calculated an increase in a deferred tax asset of $36,250 and an increase in a deferred tax liability of $34,250. Assuming a tax rate of 25%, income tax expense is 4. 5. In 2020, ABC generated installment sales income of $32,000 (all on account). Cash is expected to be collected in the following years: in 2021, $4,000; in 2022, $16,000; and in 2023, $12,000. Assume a tax rate of 20% in 2020 and 30% beginning in 2023. The balance of the deferred tax account at the end of 2020 is 6. ABC has pretax accounting income $104,000. During the year, ABC paid a fine of $3,120 that is nondeductible for tax purposes. At the end of the year, ABC collected $15,600 from a tenant for rental of a building next year. Assume a tax rate of 35%. The year-end balance of the related deferred tax account is 7. ABC has pretax accounting income $104,000. During the year, ABC paid a fine of $3,120 that is nondeductible for tax purposes. At the end of the year, ABC collected $15,600 from a tenant for rental of a building next year. Assume a tax rate of 35%. Taxable income is