The settlement rate is 10%. Other data related to the pension plan for 2018 are: Service cost $300,000 Amortization of prior service costs due to increase in benefits 100,000 Contributions 500,000 Benefits paid 225,000 Actual return on plan assets 395,000 Amortization of net gain 30,000 The balance of the projected benefit obligation at December 31, 2018 is 0 $3,850,000 $4,150,000, O $3,900,000. None of the answers are correct. O $3,925,000 Duncan Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Profits of $1,200,000 recognized for books in 2017 will be collected in the following years: Collection of Profits 2018 $200,000 2019 $400,000 2020 $600,000 The enacted tax rates are: 40% for 2017, 35% for 2018, and 30% for 2019 and 2020. Taxable income is expected in all future years. What amount should be included in the December 31, 2017, balance sheet for the deferred tax liability related to the above temporary difference? None of the answers are correct. O $370,000 O $70,000 0 $300,000 $480,000 Horner Corporation has a deferred tax asset at December 31, 2019 of $200,000 due to the recognition of potential tax benefits of an operating loss carryforward. The enacted tax rates are as follows: 40% for 2016-2018; 35% for 2019, and 30% for 2020 and thereafter. Assuming that management expects that only 50% of the related benefits will actually be realized, a valuation account should be established in the amount of: O $30,000 None of the answers are correct. $35,000 0 $100,000 0 $40,000