Question 6 As of Jan 2, 2021, Finland Co. issued at par $600,000, 9% convertible bonds. For every $1,000 of bond, the holders can convert them into 30 shares. During 2021, no bonds were converted. During 2021, there were 100,000 common shares outstanding (no preferred shares issued). Finland's 2021 net income was $320,000 and their tax rate was 30%. What would Finland's DILUTED EPS be for 2021? O $3.20 O $3.03 $3.58 O $2.71 Equipment was purchased at the start of the year. Depreciation recognized throughout the useful life of the equipment could result in O Taxable Temporary Differences - No / Deductible Temporary Differences - No O Taxable Temporary Differences - No / Deductible Temporary Differences - Yes O Taxable Temporary Differences - Yes / Deductible Temporary Differences - Yes O Taxable Temporary Differences - Yes / Deductible Temporary Differences - No One objective of interperiod tax allocation is to O reconcile the tax consequences of permanent and reversible differences appearing on the current year's financial statements. o adjust income tax expense on the income statement to be in agreement with income taxes payable on the SFP. O recognize the tax effects in the accounting period when the transactions and events are recognized for financial reporting purposes. O recognize a distribution of earnings to the shareholders. Amestion Atem During 2021, GME Corp. reported a depreciation expense of $800,000 on its income statement. On its 2021 income tax return, GME claimed CCA of $1,200,000. Also included in the 2021 income statement was $150,000 in accrued warranty expense. This will be deducted for tax purposes when paid. GME's income tax rates are 30% for 2021 and 2022, and 24% for 2023 and 2024. Over the next 3 years, the depreciation difference and warranty expense will reverse as follows: || 2022 - Depreciation Difference $160,000 / Warranty Expense - $30,000 || 2023 - Depreciation Difference $140,000 / Warranty Expense - $50,000 || 2024 - Depreciation Difference $100,000 / Warranty Expense - $70,000 || These are GME's only "reversible" differences. As of Dec 31, 2021, GME's deferred tax liability should be: 0 $75,000 O $133,800 0 $67,800 0 $73,200