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>> E A Moving to another question will save this response. taxable Question 5 deductible more likely than not A deferred tax asset is recognized for all deductible temporary differences. However, a deferred tax asset should by reduced it is more likely than not that some portion or all of the deferred tax asset will not be realized. more likely than not me increased 4 points Saved by a valuation account if, based on all available evidence, is slightly more than 50%. Question 5 4 points Saved A deferred tax asset is recognized for all deductible temporary differences. However, a deferred tax asset should be reduced 4 by a valuation account if, based on all available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. more likely than not means a level of likelihood that is slightly more than 50%. Question 6 2 points Saved immediately . A company reports the When a change in the tax rate is enacted, companies should record its effect on the existing deferred income tax accounts effect as an adjustment to income tax expense in the period of the change A Moving to another question will save this response. >> Question 6 2 points Saved . A company reports the When a change in the tax rate is enacted, companies should record its effect on the existing deferred income tax account effect as an adjustment to income tax expense in the period of the change in the future period immediately in the prior period income tax expense in the future period income tax expense in the period of the change income tax expense in the prior period income from continuing operations in the period of change income from continuing operations in the prior period income from continuing operations in the future period L.) A Moving to another question will save this response. k >> TID PUMLJ Lessees generally have two possible lease accounting methods: the first method is the finance method and the second method is the operating method. Under both methods, the lessee records the right-of-use asset and a lease liability. However, the subsequent treatment of depreciation expense on the right-of-use asset and lease liability differs under each method. over the life of the lease using the effective interest method and records In the first method or first type of lease mentioned above, the lessee recognizes depreciation expense on the lease liability interest expense on the lease liability generally on a straight line basis. In an operating lease method, the lessee also measures lease expense using the effective interest method. However, the lessee income tax expense 4, such that amortizes the right-of-use asset 4 is the same from period to period. In other words, for operating leases, only a single depreciates the right-of-use asset , which is comprised of interest on the liability and amortization of the right-of-use asset, is recognized on the income statement typically on a straight-line basis. A Question Completion Status: 10 20 30 40 50 60 70 8 9 10 L. A Moving to another question will save this response. >> Question 7 4.5 points Saved Lessees generally have two possible lease accounting methods: t lessee records the right-of-use asset each method. the sales-type method the purchase-type method the finance method the operating method the equipment the land the building the right-of-use asset amortization expense on the right-of use asset depreciation expense on the right-of-use asset interest expense on the right-of-use asset amortization expense on the lease liability depreciation expense on the lease liability interest expense on the lease liability lease expense income tax expense amortizes the right-of-use asset depreciates the right-of-use asset A and the second method is the operating method. Under both methods, the ment of depreciation expense on the right-of-use asset and lease liability differs under Vlity over the life of the lease using the effective interest method and records In the first method or first type of lease mentioned above, the less interest expense on the lease liability 4 generally In an operating lease method, the lessee also measures lease income tax expense 4, such tha depreciates the right-of-use asset 4, which is effective interest method. However, the lessee is the same from period to period. In other words, for operating leases, only a single ne right-of-use asset, is recognized on the income statement typically on a straight-line basis. lease revenue Under the operating method, each rental receipt of the lessor is recorded as leased asset is still recognized on the balance sheet of the lessor and arrangement, such as insurance, maintenance, taxes, etc. are recorded 4. generally when payments are received, i.e., performance obligation is satisfied. The underlying 4. In addition to , any other related costs to the lease 4 and Under a sales-type lease, lessors report in the income statement, in the order of the sequence shown on the multiple-step income statement, 4, thus 4. at commencement of the lease. During the lease term, is reported. on
