Brite Company provided the following data on December 31, 2021: Accounts payable Note payable, 8% unsecured, due July 1, 2023 Accrued expenses Contingent liability Deferred tax liability Bonds payable, 7%, due December 31, 2022 Premium on bonds payable 550,000 4,000,000 350,000 450,000 250,000 5,000,000 500,000 The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The deferred tax liability is not related to an asset for financial reporting and is expected to reverse in 2022. When total amount should be reported as current liabilities on December 31, 2021? a. 4,900,000 b. 5,350,000 c. 6,400,000 d. 6,850,000
Brite Company provided the following data on December 31, 2021: Accounts payable Note payable, 8% unsecured, due July 1, 2023 Accrued expenses Contingent liability Deferred tax liability Bonds payable, 7%, due December 31, 2022 Premium on bonds payable 550,000 4,000,000 350,000 450,000 250,000 5,000,000 500,000 The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The deferred tax liability is not related to an asset for financial reporting and is expected to reverse in 2022. When total amount should be reported as current liabilities on December 31, 2021? a. 4,900,000 b. 5,350,000 c. 6,400,000 d. 6,850,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...
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