Question 1 Not yet answered Points out of 3.00 Flag question Question text The Snella Company reports 2015 Pre-tax Net Income of $10,000. The following items exist: Premiums Paid for Key Officer Life Insurance $ 200 Accrued Revenues $ 80 Unearned Revenues $ 50 The tax rate is 20%. Indicate the amounts for 2015 Income Tax Expense and 12/31/15 Income Tax Payable, respectively: Select one: O a. $2,040, $2,034 b. $1,960, $1,934 O c. $1,960, $1,986 O d. $2,040, $1,986 O e. $2,034, $2,034 Question 2 Not yet answered Points out of 3.00 Flag question Question text Kensington had this info at the end of 2015, its first year of operations: Pretax book income $ 800,000 Accrued expense 300,000 Excess of tax over book depreciation 200,000 Interest Income on municipal bonds 100,000 No other permanent or temporary differences exist. The accrued expense will be paid in 2018; the depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable. The 12/31/15 Income Tax Payable is: Select one:a. $60,000 O b. $240,000 O c. $210,000 d. $180,000 O e. $360,000 Question 3 Not yet answered Points out of 3.00 Flag question Question text The lessee includes the present value of the salvage value in the cost of the leased equipment Select one: O a. Only if it is guaranteed b. Only if it is not guaranteed c. Only if it is guaranteed and the lessee is aware of the lessor's interest rate d. Only if it is not guaranteed and the lessee is not aware of the lessor's interest rate Question 4 Not yet answered Points out of 3.00 Flag question Question text Indicate the type of Deferred Tax account created by Accrued Expenses and Prepaid Expenses, respectively: Select one: O a. Liability, Asset b. Asset, Liability c. Liability, Liability O d. Asset, Asset Question 5 Not yet answered Points out of 3.00Flag question Question text Which of the following requires interperiod tax allocation? Select one: O a. Discontinued Operations Loss b. Municipal bond interest revenue c. The use of similar depreciation computations for both book and tax purposes. d. Probable, estimable contingent losses. Question 6 Not yet answered Points out of 3.00 Flag question Question text Which of the following differences would result in future taxable amounts (DTLs)? Select one: O a. Expenses or losses that are deductible before they are recognized in financial income. O b. Revenue or gains that are taxable before they are recognized in financial income c. Expenses or losses that are deductible after they are recognized in financial income d. Revenues or gains that are recognized in financial income but are never recognized as revenue or gain for tax purposes e. Expenses or losses that are deducted from financial income but never deductible for tax purposes Question 7 Not yet answered Points out of 3.00 Flag question Question text In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2016 income tax return when the tax rate was 40%. Data related to the reversal of the excess tax deduction for depreciation follow:Year Reversal of excess tax deduction Enacted tax rates 2017 $10,000 40% 2018 20,000 40% 2019 40,000 30% 2020 50,000 30% There are no other temporary differences. Taxable Income in 2016 is $67,500. Tow expects to report profits (rather than losses) for tax purposes for all future years. What is 2016 Income Tax Expense? Select one: O a. $12,000 b. $39,000 c. $75,000 d. $66,000 e. $33,000 Question 8 Not yet answered Points out of 3.00 Flag question Question text At December 31, 20X4, Bren Co. had the following deferred income tax items: A deferred income tax liability of $15,000 related to a noncurrent asset . . A deferred income tax asset of $3,000 related to a current liability A deferred income tax asset of $8,000 related to a noncurrent liability Which of the following should Bren report as the noncurrent item(s) on its December 31, 20X4 balance sheet? Select one: O a. $12,000 Net Liability O b. $4,000 Net Liability c. $7,000 Net Liability d. $7,000 Net Asset O e. $3,000 Net Asset Question 9 Not yet answered Points out of 3.00"3'53? "I'''' Flag question Question text The Palms company records a Deferred Tax Asset; it is likely that the UTA will not be realized due to doubtful future incomes. Palms properly records an Allowance account. Recording the allowance will increase Select one: 8. Income Tax Expense b. Income Tax Payable o. Deferred Tax Liability d. Benefit due to Loss Carry forward Question 10 Not yet answered Points out of 3.00 Flag question Question text Given the following for the XYZ Company: Pre-Tex Isa; mama meme 2015 $10,000 20% 2016 8,000 20% 2017 (20', 000) 20% 2018 1'2000 20% Assume XYZ elects the carryback provision in 2017 and that future income is not "more likely than not." Reported 2017 Net Loss is: Select one: a. $16,400 b. $15,000 0. $16,000 d. $4,000 e. $20,000 Question 11 Not yet answered Points out of 3.00 Flag question Question text Lease X contains a bargain purchase option, but the lease term is equal to 70% of the estimated economic life of the leased property. Lease Y does not transfer ownership of the property to the lessee at the end of the lease term, but the present value of the lease payments is equal to 75% of the fair value of the leased property. How should the lessee classify Lease X and Lease Y, respectively? Select one: a. Operating Lease, Capital Lease b. Operating Lease, Operating Lease c. Capital Lease, Capital Lease d. Capital Lease, Operating Lease Question 12 Not yet answered Points out of 3.00 Flag question Question text Given the following for the QRS Company: Pre-Tax Year Net Income (Loss) Tax Rate 2015 $10,000 20% 2016 8,000 20% 2017 (20,000) 20% 2018 12,000 20% QRS elected the carryback provision in 2017. Future income is probable. The 2018 Net Income is: Select one: O a. $2,400 b. $2,000 O c. $9,600 O d. $8,000 e. $16,000 Question 13 Not yet answered11111 11111 Points out of 3.00 Flag question Question text The Herbertson Company leases machines to clients. Annual rentals are paid each year, with the first payment due on the day the lease begins. A machine with a book value of $10,000 is leased. Guaranteed salvage value is $1,000. Lease term is ve years. Herbertson's interest rate is 5%. What is the annual lease payment? Select one: at. $2,261.33 b. $2,027.40 c. $2,199.76 d. $2,128.77 9. $1,979.78 Question 14 Not yet answered Points out of 3.00 Flag question Question text Skor Co. leased equipment to Douglas Corp. on January 2, 2011 for an 8-year period expiring December 31. 2018. Equal payments under the lease are $600,000 and are due on January 2 of each year. The rst payment was made on January 2, 2011. The cost of the equipment is $2,800,000. The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments is $3,300,000. What amount of net profit on the sale should Skor report for the year ended December 31, 2011? Select one: a. $720,000 b. $500,000 0. $90,000 d. $600,000 9. $2,300,000 Question 15 Not yet answered Points out of 3.00 r. f. r. f. r. Flag mention Question text On January 1. 2018. Penn Corp. signed an eight-year noncancelable lease for certain machinery. The terms of the lease called for Penn to make annual payments of $100,000 at the beginning of each year for eight years. Penn properly accounted for this lease transaction as a capital lease. The lease payments were determined to have a present value of $586.842 at an effective interest rate of 10%. Interest expense to be recorded in 2018 will be: Select one: a. $51 .31 6 b. $1 0.000 c. $466.50? d. $48.684 e. $58684