For the current year, Judge Corp. had $80M in pretax accounting income. This included warranty expense of $6M and $20M in depreciation expense according to US GAAP rules. According to tax rules, none of the warranty expenses are deductible in the current years tax return and tax depreciation amounted to $35M in total for the year, $15M more than US GAAP depreciation expense. In the absence of other temporary or permanent differences, what was Judge's taxable income for the year?

		$91 million.
		$80 million.
		$59 million.
		$71 million.

Spring Company had 10 million shares of $1 par common stock outstanding at the start of 2021. During 2021, Spring had the following transactions relating to treasury stock:

April 15:	Reacquired 4 million shares at $12.
October 2:	Sold 2 million shares at $15.

The journal entry for the reissuance of treasury stock on October 2nd would be:

Cash	$30M
Treasury stock		$24M
Paid in capital, treasury stock		$6M

Cash	$30M
Treasury stock		$30M

Cash	$30M
Common stock, par		$2M
Paid in capital, excess		$28M

Cash	$30M
Treasury stock		$16M
Paid in capital, treasury stock		$14M

AB Inc. had $50,000 in income tax payable for the current year. AB also determine that due to temporary differences its deferred tax asset account will need to increase by $2,000 and its deferred tax liability account will need to decrease by $5,000 (the tax rate has already been applied to all amounts). Based on this information, the journal entry to record taxes for the current year would include a debit to income tax expense for:

		$48,250.
		$50,000.
		$43,000.
		$53,000.

Justice Inc. granted options for 1,000,000 shares of its $1 par common stock at the beginning of the current year. The exercise price is $25 per share, which was also the market value of the stock on the grant date. The fair value of the options, estimated using an option pricing model, is $15 per option.

If the options have a vesting period of four years, what would be the balance in "Paid-in Capital, Stock Options" two years after the grant date?

		A credit of $7.5 million.
		A debit of $3.75 million.
		A credit of $12.5 million.
		A debit of $6.25 million.

Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax asset?

		Accelerated depreciation recorded for tax purposes; straight-line for financial reporting.
		Municipal bond interest revenue permanently excluded from taxable income.
		Subscription revenue collected in advance and taxed when collected; recorded as deferred revenue until earned for financial reporting.
		None of these answer choices are correct.