Unit 2 Review Crossword Across Clues Down Clues Puzzle 1. A company with a DB pension plan achieves actual return of 8.5%. Benefits paid to retirees was $30,320 if beginning plan assets was $370,850 and ending plan assets was $400,850, cash contributions totaled 2. For the current year, a company with a DB pension plan has service cost $103.000 benefits paid $74,000; and loss on PBO of $28,000. Assuming an ending P80 of $400,000 and interest rate of 5%, the beginning PBO balance was 3. ABC reports the following year-end balances: deferred tax asset 585,750, deferred tax liability S45.000; valuation allowance $26,333. The year-end balance sheet will include a net deferred tax liability of 4. For the year, ABC has taxable income $410,680. At year-end, ABC calculated an increase in a deferred tax asset of $35.840 and an increase in a deferred tax liability of $27,000. Assuming a tax rate of 25%, income tax expense is 5. In 2020. ABC generated installment sales income of $23.800 (all on account). Cash is expected to be collected in the following years: in 2021 $2.950; in 2022, $11,800 and in 2023. $8,850. Assume a tax rate of 22% in 2020 and 28% beginning in 2023. The balance of the deferred tax account at the end of 2020 is Use the following information to answer the next 2 clues. ABC has pretax accounting income $92.430. During the year, ABC paid a fine of S1,328 that is nondeductible for tax purposes. At the end of the year, ABC collected $13,300 from a tenant for rental of a building next year. Assume a tax rate of 31% 6. The year-end balance of the related deferred tax account is 7. Taxable income is Use the following information to answer the next 6 clues On January 1, 2021, a company purchased equipment for $86,000. The asset has a 3-year useful fe and no residual value For financial reporting, the asser is depreciated on a straight-line basis. For tax reporting, depreciation is 529,600 in 2021, 519.800 in 2022, and 88,800 in 2023 (based on MACRS). Taxable income in 2021 is $263.000 There are no other differences between accounting and tacable income. The tax rate is 25% for all years. 8. Annual depreciation expense on the books is 9. Income tax payable in 2021 is 10. The balance of the deferred tax account at the end of 2021 is 11. Income tax expense in 2021 is 12. Pretax accounting income in 2021 is 13. Net income in 2021 is 14. On January 1, ABC signed a 17-year operating lease with annual payments of $12,000 beginning immediately. Appropriately discounted at 9%, the PV of lease payments is $111,751. The amortization expense accrued at the end of the first year is 15: ABC leased a building from XYZ. The present value of lease payments is $179,881, which is 100% of the asset's fair value. The useful life of the building is 24 years, and the lease term is 12 years. In year 1 of the lease, ABC's amortization expense is 16. XYZ is lessor in a sales-type lease. The lessor acquired the asset for 5810,000 and the present value of lease payments is $751,575. Selling profit is 17. ABC acquired equipment in 2020. At the end of 2020, the equipment had a book value $788,400 and a tax basis S238,520. The difference will reverse equally over 2021-2023. Assume a tax rate of 20% for 2021 and 30% for 2022 2023 In 2021, ABC will reduce the deferred tax account by _ Actress CHE Down Clues > Unit 2 Review Crossword Across Clues Down Clues Puzzle 1. A company with a DB pension plan achieves actual return of 8.5%. Benefits paid to retirees was $30,320 if beginning plan assets was $370,850 and ending plan assets was $400,850, cash contributions totaled 2. For the current year, a company with a DB pension plan has service cost $103.000 benefits paid $74,000; and loss on PBO of $28,000. Assuming an ending P80 of $400,000 and interest rate of 5%, the beginning PBO balance was 3. ABC reports the following year-end balances: deferred tax asset 585,750, deferred tax liability S45.000; valuation allowance $26,333. The year-end balance sheet will include a net deferred tax liability of 4. For the year, ABC has taxable income $410,680. At year-end, ABC calculated an increase in a deferred tax asset of $35.840 and an increase in a deferred tax liability of $27,000. Assuming a tax rate of 25%, income tax expense is 5. In 2020. ABC generated installment sales income of $23.800 (all on account). Cash is expected to be collected in the following years: in 2021 $2.950; in 2022, $11,800 and in 2023. $8,850. Assume a tax rate of 22% in 2020 and 28% beginning in 2023. The balance of the deferred tax account at the end of 2020 is Use the following information to answer the next 2 clues. ABC has pretax accounting income $92.430. During the year, ABC paid a fine of S1,328 that is nondeductible for tax purposes. At the end of the year, ABC collected $13,300 from a tenant for rental of a building next year. Assume a tax rate of 31% 6. The year-end balance of the related deferred tax account is 7. Taxable income is Use the following information to answer the next 6 clues On January 1, 2021, a company purchased equipment for $86,000. The asset has a 3-year useful fe and no residual value For financial reporting, the asser is depreciated on a straight-line basis. For tax reporting, depreciation is 529,600 in 2021, 519.800 in 2022, and 88,800 in 2023 (based on MACRS). Taxable income in 2021 is $263.000 There are no other differences between accounting and tacable income. The tax rate is 25% for all years. 8. Annual depreciation expense on the books is 9. Income tax payable in 2021 is 10. The balance of the deferred tax account at the end of 2021 is 11. Income tax expense in 2021 is 12. Pretax accounting income in 2021 is 13. Net income in 2021 is 14. On January 1, ABC signed a 17-year operating lease with annual payments of $12,000 beginning immediately. Appropriately discounted at 9%, the PV of lease payments is $111,751. The amortization expense accrued at the end of the first year is 15: ABC leased a building from XYZ. The present value of lease payments is $179,881, which is 100% of the asset's fair value. The useful life of the building is 24 years, and the lease term is 12 years. In year 1 of the lease, ABC's amortization expense is 16. XYZ is lessor in a sales-type lease. The lessor acquired the asset for 5810,000 and the present value of lease payments is $751,575. Selling profit is 17. ABC acquired equipment in 2020. At the end of 2020, the equipment had a book value $788,400 and a tax basis S238,520. The difference will reverse equally over 2021-2023. Assume a tax rate of 20% for 2021 and 30% for 2022 2023 In 2021, ABC will reduce the deferred tax account by _ Actress CHE Down Clues >