Lake Corp., a newly organized company, reported pretax financial income of USD100,000 for the current year. Among the items reported in Lake's income statement are the following:Premium on officer's life insurance with Lake as owner and beneficiaryUSD15,000Interest received on municipal bonds20,000The enacted tax rate for the current year is 30% and 25% thereafter. In its December 31 balance sheet, Lake should report a deferred income tax liability of:

1 .CPA-01247How should a gain from the sale of used equipment for cash be reported in a statement of cash flows using the indirect method?

A In investment activities as a reduction of the cash inflow from the sale. B In investment activities as a cash outflow. C In operating activities as an addition to income. D In operating activities as a deduction from income.

题型: 单选题 提问时间: 2021-08-24

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2 .Jan Corp. amended its defined benefit pension plan on January 1, granting a total credit of USD100,000 to four employees for services rendered prior to the plan's adoption. The employees, A, B, C, and D, are expected to retire from the company as follows:"A" will retire after three years"B" and "C" will retire after five years"D" will retire after seven yearsWhat is the amount of prior service cost amortization in the first year under U.S. GAAP?

A USD20,000 B USD0 C USD5,000 D USD25,000

题型: 单选题 提问时间: 2021-08-24

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3 .Big Sports Inc. and its subsidiaries, Batter Up, Slam Dunk and Touchdown, had the following defined benefit pension plans at December 31:Big SportsBatter UpSlam DunkTouchdownFair Value - Plan AssetsUSD1,000,000USD1,275,000USD900,000USD200,000PBO1,600,000850,000700,000800,000Benefits Payable - next year425,000360,000150,000245,000How would these pension plans be reported on Big Sports' December 31, consolidated balance sheet under U.S. GAAP?

A Noncurrent asset USD0;Current liability USD45,000;Noncurrent liability USD530,000 B Noncurrent asset USD625,000;Current liability USD45,000;Noncurrent liability USD1,155,000 C Noncurrent asset USD0;Current liability USD0;Noncurrent liability USD575,000 D Noncurrent asset USD625,000;Current liabili...

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4 .Stone Co. began operations in Year 1 and reported USD225,000 in income before income taxes for the year. Stone's Year 1 tax depreciation exceeded its book depreciation by USD25,000. Stone also had nondeductible book expenses of USD10,000 related to permanent differences. Stone's tax rate for Year 1 was 40%, and the enacted rate for years after Year 1 is 35%. In its December 31, Year 1, balance sheet, what amount of deferred income tax liability should Stone report?

A USD10,000 B USD14,000 C USD8,750 D USD12,250

题型: 单选题 提问时间: 2021-08-24

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5 .Orleans Co., a cash basis taxpayer, prepares accrual basis financial statements. In its Year 2 balance sheet, Orleans' deferred income tax liabilities increased compared to Year 1. Which of the following changes would cause this increase in deferred income tax liabilities?I. An increase in prepaid insurance.II. An increase in rent receivable.III. An increase in warranty obligations.

A I only. B III only. C I and II. D II and III.

题型: 单选题 提问时间: 2021-08-24

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7 .For Year 1, Clark Corp. reported depreciation of USD300,000 in its income statement. On its Year 1 income tax return, Clark reported depreciation of USD500,000. Clark's income statement also included USD50,000 accrued warranty expense that will be deducted for tax purposes when paid. Clark's enacted tax rates are 30% for Year 1 and Year 2, and 25% for Year 3 and Year 4. The depreciation difference and warranty expense will reverse over the next three years as follows:DepreciationdifferenceWarrantyexpenseYear 2USD80,000USD10,000Year 370,00015,000Year 450,00025,000USD200,000USD50,000These were Clark's only temporary differences. In Clark's Year 1 income statement, the deferred portion of its provision for income taxes should be:

A USD67,000 B USD41,000 C USD45,000 D USD37,500

题型: 单选题 提问时间: 2021-08-24

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8 .Thorn Co. applies Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. At the end of Year 1, the tax effects of temporary differences were as follows:Deferredtax assets(liabilities)Related assetclassificationAccelerated tax depreciationUSD(75,000)Noncurrent assetAdditional costs in inventory for tax purposes25,000Current assetUSD(50,000)A valuation allowance was not considered necessary. Thorn anticipates that USD10,000 of the deferred tax liability will reverse in Year 2. In Thorn's December 31, Year 1, balance sheet, what amount should Thorn report as noncurrent deferred tax liability under U.S. GAAP?

A USD40,000 B USD75,000 C USD65,000 D USD50,000

题型: 单选题 提问时间: 2021-08-24

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9 .Which of the following items is not subject to the application of intraperiod income tax allocation?

A Discontinued operations. B Income from continuing operations. C Extraordinary gains and losses. D Operating income.

题型: 单选题 提问时间: 2021-08-24

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10 .On January 15, Year 1, Rico Co. declared its annual cash dividend on common stock for the year ended January 31, Year 1. The dividend was paid on February 9, Year 1, to stockholders of record as of January 28, Year 1. On what date should Rico decrease retained earnings by the amount of the dividend?

A February 9, Year 1 B January 31, Year 1 C January 15, Year 1 D January 28, Year 1

题型: 单选题 提问时间: 2021-08-24

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