{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T07:52:13-04:00", "answer_date": "2024-06-28 07:52:13", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4267616", "url": "\/study-help\/questions\/the-longterm-liabilities-section-of-cps-transportations-december-31-2017-4267616", "question_creation_date_js": "2024-06-28T07:52:13-04:00", "question_creation_date": "Jun 28, 2024 07:52 AM", "meta_title": "[Solved] The long-term liabilities section of CPS | SolutionInn", "meta_description": "Answer of - The long-term liabilities section of CPS Transportation's December 31, 2017, balance sheet included the following: (FV | SolutionInn", "meta_keywords": "long-term,liabilities,section,cps,transportation,s,december,31,2017,balance,sheet,included", "question_title_h1": "The long-term liabilities section of CPS Transportation's December 31, 2017, balance sheet included the following: (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of", "question_title": "The long-term liabilities section of CPS Transportation's December 31, 2017, balance sheet", "question_title_for_js_snippet": "The long term liabilities section of CPS Transportation's December 31, 2017, balance sheet included the following (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1) (Use appropriate factor(s) from the tables provided ) a A lease liability with 13 remaining lease payments of $16,000 each, due annually on January 1 Lease liability$113,654Less current portion4,635$109,019 The incremental borrowing rate at the inception of the lease was 11 and the lessor's implicit rate, which was known by CPS Transportation, was 10 b A deferred income tax liability due to a single temporary difference The only difference between CPS Transportation's taxable income and pretax accounting income is depreciation on a machine acquired on January 1, 2017, for $580,000 The machine's estimated useful life is five years, with no salvage value Depreciation is computed using the straight line method for financial reporting purposes and the MACRS method for tax purposes Depreciation expense for tax and financial reporting purposes for 2018 through 2021 is as follows MACRSStraight lineYearDepreciationDepreciationDifference2018$182,000$116,000$66,000201991,000116,000(25,000)202081,000116,000(35,000)202171,000116,000(45,000) The enacted federal income tax rates are 35 for 2017 and 40 for 2018 through 2021 For the year ended December 31, 2018, CPS's income before income taxes was $980,000 On July 1, 2018, CPS Transportation issued $680,000 of 9 bonds The bonds mature in 10 years and interest is payable each January 1 and July 1 The bonds were issued at a price to yield the investors 10 CPS records interest at the effective interest rate Required 1 Determine CPS Transportation's income tax expense and net income for the year ended December 31, 2018 2 Determine CPS Transportation's interest expense for the year ended December 31, 2018 3 Prepare the long term liabilities section of CPS Transportation's December 31, 2018, balance sheet I need help with this accounting question", "question_description": "

The long-term liabilities section of CPS Transportation's December 31, 2017, balance sheet included the following: (FV of $1,PV of $1,FVA of $1,PVA of $1,FVAD of $1andPVAD of $1)(Use appropriate factor(s) from the tables provided.)<\/strong><\/p>

<\/p>

a. A lease liability with 13 remaining lease payments of $16,000 each, due annually on January 1:<\/p>

<\/p>

Lease liability$113,654Less: current portion4,635$109,019<\/p>

<\/p>

The incremental borrowing rate at the inception of the lease was 11% and the lessor's implicit rate, which was known by CPS Transportation, was 10%.<\/p>

<\/p>

b. A deferred income tax liability due to a single temporary difference. The only difference between CPS Transportation's taxable income and pretax accounting income is depreciation on a machine acquired on January 1, 2017, for $580,000. The machine's estimated useful life is five years, with no salvage value. Depreciation is computed using the straight-line method for financial reporting purposes and the MACRS method for tax purposes. Depreciation expense for tax and financial reporting purposes for 2018 through 2021 is as follows:<\/p>

<\/p>

MACRSStraight-lineYearDepreciationDepreciationDifference2018$182,000$116,000$66,000201991,000116,000(25,000)202081,000116,000(35,000)202171,000116,000(45,000)<\/p>

<\/p>

The enacted federal income tax rates are 35% for 2017 and 40% for 2018 through 2021. For the year ended December 31, 2018, CPS's income before income taxes was $980,000.<\/p>

<\/p>

On July 1, 2018, CPS Transportation issued $680,000 of 9% bonds. The bonds mature in 10 years and interest is payable each January 1 and July 1. The bonds were issued at a price to yield the investors 10%. CPS records interest at the effective interest rate.<\/p>

<\/p>

Required:<\/strong><\/p>

1.<\/strong>Determine CPS Transportation's income tax expense and net income for the year ended December 31, 2018.<\/p>

2.<\/strong>Determine CPS Transportation's interest expense for the year ended December 31, 2018.<\/p>

3.<\/strong>Prepare the long-term liabilities section of CPS Transportation's December 31, 2018, balance sheet.<\/p>

I need help with this accounting question<\/p>", "transcribed_text": "", "related_book": { "title": "Income Tax Fundamentals 2013", "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516", "edition": "31st Edition", "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg", "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618", "see_more_uri": "" }, "free_related_book": { "isbn": "B0BZ377M6F", "uri": "\/textbooks\/wholography-the-whole-writing-of-the-arts-and-sciences-as-one-educational-discipline-1st-edition-979-8386474355-291229", "name": "Wholography The Whole Writing Of The Arts And Sciences As One Educational Discipline", "edition": "1st Edition" }, "question_posted": "2024-06-28 07:52:13", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/suppose-your-company-wants-to-create-a-logical-model-of", "description": "Suppose your company wants to create a logical model of a proposed information system, and then decide whether to develop the system in-house and purchase a software package. You have been asked to...", "stars": 3 }, { "url": "\/study-help\/psychology\/work-settings-of-recent-graduates-1980719", "description": "work settings of recent graduates;", "stars": 3 }, { "url": "\/feherty-inc-purchased-the-following-investments-during-december-2013-1", "description": "Feherty, Inc., purchased the following investments during December 2013: 1. 50 of Donald Company's $1,000 bonds. The bonds pay semiannual interest payments and return principal in eight years....", "stars": 3 }, { "url": "\/study-help\/questions\/matlab-need-help-with-second-problemcan-you-show-the-script-9875042", "description": "matlab need help with Second problem?can you show the script and command window In Chemistry, Periodic Table contains many information of each element. Write a script (code in script file) named...", "stars": 3 }, { "url": "\/study-help\/questions\/economics-a-you-are-to-choose-two-goodsservices-or-resources-that-you-194264", "description": "Economics how you go the answer B) Next identify the unit of measure you will use to count your output (you cannot use time or money since you do not produce either). Unit of measure Good 1: Unit of...", "stars": 3 }, { "url": "\/study-help\/questions\/if-a-cost-can-be-traced-directly-to-its-cost-1002151", "description": "If a cost can be traced directly to its cost object, why might a company choose not to trace but to rather include the cost in the indirect cost category and allocate on some arbitrary basis? Let's...", "stars": 3 }, { "url": "\/study-help\/questions\/read-the-article-nbaa-humanitarian-emergency-response-operator-heor-database-1010472", "description": "READ the article, NBAA Humanitarian Emergency Response Operator (HEOR) Database (https:\/\/nbaa.org\/aircraft-operations\/hero-database\/humanitarian-groups\/ ), presented by the National Business Aviation...", "stars": 3 }, { "url": "\/study-help\/questions\/23-refer-to-btz-company-what-is-the-net-cash-1021303", "description": "23. Refer to BTZ Company. What is the net cash flow in Year 2? 12:28 a. Php298,813 b. Php473,813 c. Php498,813 d. Php626,875 050 145 VALUATION CONCEPTS AND METHODOLOGIES 24. Unicap Company is opening...", "stars": 3 }, { "url": "\/study-help\/questions\/explain-the-stuxnet-virus-be-sure-to-cover-what-its-1000430", "description": "Explain the Stuxnet virus. Be sure to cover what its goals were thought to be, how successful it was in accomplishing those goals, the possible methods of initial system infections, how it was...", "stars": 3 }, { "url": "\/study-help\/questions\/anna-luke-charlotte-diego-and-emma-share-ownership-of-an-2109083", "description": "Anna, Luke, Charlotte, Diego and Emma share ownership of an apartment building under a tenancy in common, with equal shares of 20%. If Charlotte dies, which one of the following represents the...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/please-solve-a-bcd-1when-goidwill-dies-it-is-called-4267615", "next": "\/study-help\/questions\/a-study-is-run-to-estimate-the-mean-total-cholesterol-4267617" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "The long-term liabilities section of CPS Transportation's December 31, 2017, balance sheet", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/the-longterm-liabilities-section-of-cps-transportations-december-31-2017-4267616" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }1" } }