Could you help me answer these so I can compare my answer to yours? Please leave a brief explanation after the letter you chose.

A temporary difference which would result in a deferred tax liability is *

installment sale included in accounting income at the time of sale but not in tax income

subscription received in advance

research cost is recognized as expense in accounting income but not in tax income

Dividend revenue on equity investment

A temporary difference which would result in a deferred tax asset is*

Interest revenue on municipal bonds

Accelerated depreciation for tax but straight line for accounting

Tax penalty or surcharge

Expenses deducted from accounting income but not deductible for tax purposes

A lease agreement will qualify as a finance lease if one of these conditions occur: *

The lessee returns the leased property to the lessor at the end of the lease term.

The lease does not have a bargain purchase option.

The lease term is for major of the economic life of the asset.

The present value of the minimum lease payment amounts to substantially less than the fair value of the leased asset.

It is that portion of the lease payments that is not fixed in amount but is based on a factor other than just the passage of time, for example, percentage of sales, amount of usage, price index and market rate of interest *

Variable rent

Contingent rent

Bargain purchase option

Executory cost

All of the following must be disclosed separately, except *

The aggregate amount of current and deferred tax relating to items recognized directly in equity.

Analysis of the beginning and ending balance of deferred tax asset and deferred tax liability.

The applicable tax rate, the basis on which the tax rate is applied and explanation for any change in tax rate.

The tax bases of all items on which deferred tax has been calculated.

This type of lease involves recognition of a manufacturer's or dealer's profit or loss on the transfer of the asset to the lessee. *

Operating lease

Sale and leaseback

Sales type lease

Direct financing lease.

Which of the following does not affect accumulated profits? *

Stock dividend

Share split

Conversion of preference share to ordinary share

Treasury share transaction

The situation which would normally lead to a lease being classified as a finance lease include all of the following, except *

The lease transfers ownership of the underlying asset to the lessee at the end of the lease term.

The lessee has the option to purchase the asset at a price which is expected to be sufficiently higher than the fair value at the date the option becomes exercisable.

The lease term is for the major part of the economic life of the underlying asset even if title is not transferred.

The present value of the lease payments amounts to substantially all of the fair value of the underlying asset at the inception of the lease.