1. ACE Company had pretax GAAP income of $50,000 for the tax year ended December 31. Label each of the following items as either Deferred Tax Liabilities (DTL) or Deferred Tax Assets (DTA) 1. Excess accelerated depreciation for tax purposes, $5,000 2. Unrealized holding gain on securities accounted for under FV-NI, $2,000 3. Unrealized holding loss on securities accounted for under FV-NI, $2,000 4. Rental receipts received in advance, $30,000 5. Litigation contingency accrual, $10,000 6. Six-month prepaid rent deposit, $12,000 40. 5
1. ACE Company had pretax GAAP income of $50,000 for the tax year ended December 31. Label each of the following items as either Deferred Tax Liabilities (DTL) or Deferred Tax Assets (DTA) 1. Excess accelerated depreciation for tax purposes, $5,000 2. Unrealized holding gain on securities accounted for under FV-NI, $2,000 3. Unrealized holding loss on securities accounted for under FV-NI, $2,000 4. Rental receipts received in advance, $30,000 5. Litigation contingency accrual, $10,000 6. Six-month prepaid rent deposit, $12,000 40. 5
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 31P
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Transcribed Image Text:1. ACE Company had pretax GAAP income of $50,000 for the tax year ended December 31.
Label each of the following items as either Deferred Tax Liabilities (DTL) or Deferred Tax
Assets (DTA)
1. Excess accelerated depreciation for tax purposes, $5,000
2. Unrealized holding gain on securities accounted for under FV-NI, $2,000
3. Unrealized holding loss on securities accounted for under FV-NI, $2,000
4. Rental receipts received in advance, $30,000
5. Litigation contingency accrual, $10,000
6. Six-month prepaid rent deposit, $12,000
40.000
5
2.80
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