INTERMEDIATE ACCOUNTING LL W/ ACCESS 540
10th Edition
ISBN: 9781264688715
Author: SPICELAND
Publisher: MCG
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Textbook Question
Chapter 16, Problem 16.26E
Identifying income tax deferrals
• LO16–1, LO16–2, LO16–4, LO16–7
Listed below are ten independent situations. For each situation indicate (by letter) whether it will create a
Situation
_______ 1. Advance payments on insurance, deductible when paid
_______ 2. Estimated warranty costs; tax deductible when paid
_______ 3. Rent revenue collected in advance; cash basis for tax purposes
_______ 4. Interest received from investments in municipal bonds
_______ 5. Prepaid expenses, tax deductible when paid
_______ 6. Net operating loss carryforward
_______ 7. Net operating loss carryback
_______ 8. Straight-line
_______ 9. Organization costs expensed when incurred; tax deductible over 15 years
_______ 10. Life insurance proceeds received upon the death of the company president
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Exercise 16-10 (Algo) Calculate income tax amounts under various circumstances; financial statement
effects [LO16-2, 16-3]
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced
by temporary differences:
($ in thousands)
Taxable income
Future deductible amounts
Future taxable amounts.
Balance(s) at beginning of the year:
Deferred tax asset
Deferred tax liability
The enacted tax rate is 25%.
Required:
Situation
1
2
3
4
$ 112
$ 244
$ 252
$ 344
16
20
20
16
16
56
2
16
8
2
For each situation, determine the following:
Note: Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts
should be indicated by a minus sign. Leave no cell blank, enter "O" wherever applicable.
a. Income tax payable currently.
b. Deferred tax asset-ending balance.
c. Deferred tax asset-change.
d. Deferred tax liability-ending balance.
e. Deferred tax liability change.
f. Income tax…
Chapter 16 Solutions
INTERMEDIATE ACCOUNTING LL W/ ACCESS 540
Ch. 16 - Prob. 16.1QCh. 16 - A deferred tax liability (or asset) is described...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Temporary differences result in future taxable or...Ch. 16 - Identify three examples of differences with no...Ch. 16 - The income tax rate for Hudson Refinery has been...Ch. 16 - A net operating loss occurs when tax-deductible...Ch. 16 - Prob. 16.10QCh. 16 - Additional disclosures are required pertaining to...
Ch. 16 - Additional disclosures are required pertaining to...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - IFRS and U.S. GAAP follow similar approaches to...Ch. 16 - Valuation allowance LO162, LO163 VeriFone Systems...Ch. 16 - Prob. 16.8ECh. 16 - Identify future taxable amounts and future...Ch. 16 - Prob. 16.14ECh. 16 - Identifying income tax deferrals LO161, LO162,...Ch. 16 - Concepts; terminology LO161 through LO168 Listed...Ch. 16 - FASB codification research LO165, LO168, LO1610...Ch. 16 - Prob. 16.1DMPCh. 16 - Prob. 16.2DMPCh. 16 - Prob. 16.9DMP
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