PLACE YOUR ANSWERS ON THE ANSWER SHEET NEXT PAGE A. Assets=300; Liab= 100; O.E.= 80 Find the potential tax liability. B. Assets (current value)= 700; book value= 500 Liab(current value)= 400; book value= 650 Tax rate= 20 Find the potential tax liab. C. Life Insur. Policy: face value=900 Premiums paid in= 250 Cash surrend value=700 Loan due= 325 What value is shown on the bal. sheet D. True or false: Interim statements ARE audited E. Qtr 1 income = 7,000; tax recognized= 2500 Qtr 2 income= 8,000; tax recog= 2100 Qtr income= 9,000 ; tax recog= 1800|| Qtr 4 income= 11,000 Tax rate = .40 Find tax to recognize for Qtr 4 =