YesNo, Inc. had pretax net income of $180,000 and the following differences between taxable income and pretax net income for the year ended December 31, Year 9.

$40,000 of rent received in advance (taxable when received) $10,000 of additional MACRS depreciation $5,000 of non-tax-deductible fines and penalties

On 12/31/Y8, YesNo reported a deferred tax liability for depreciation differences with a normal balance of $20,000. Some depreciable assets were retired early in Year 9. There have not yet been any journal entries made in Year 9 affecting the DTL-Depreciation account. The total unresolved temporary difference future taxable amount for depreciation at 12/31/Y9 is $70,000. The only enacted income tax rate is 20%.

1. For YesNo, at the end of Year 9, when moving from pretax net income (PTNI) to taxable income (TI), the unearned rent amount is: A. ignored B. subtracted C. added

2. For YesNo, at the end of Year 9, when moving from pretax net income (PTNI) to taxable income (TI), the excess tax depreciation amount is: A. added B. subtracted C. ignored

3. For YesNo, at the end of Year 9, when moving from pretax net income (PTNI) to taxable income (TI), the amount of non-tax-deductible fines and penalties is: A. subtracted B. ignored C. added

4. The amount of YesNo's taxable income (TI) at 12/31/Y9 is: A. 215,000 B. 205,000 C. 235,000 D. 135,000

5. The required ending balance in YesNo's DTL-Depreciation account at 12/31/Y9 is:

A. 14,000 B. 50,000 C. 34,000 D. 20,000

6. Which side is the balance on in YesNo's DTL-Depreciation account at 12/31/Y9? A. debit B. credit

7. The amount of the needed 12/31/Y9 year-end adjustment to YesNo's DTL-Depreciation account is: A. 30,000 B. 20,000 C. 6,000 D. 14,000

8. The 12/31/Y9 year-end adjustment needed in YesNo's DTL-Depreciation account is a: A. debit B. credit