When dealing with deferred taxes, which of the following does not need to be disclosed in a companyâs financial statements?
I. The nature and amount of each type of operating loss and tax credit carryforward.
II. The types and amount of existing temporary differences.
III. The types and amounts of existing permanent differences.
a. I, II, and III
b. I and II only
c. III only
d. I only
When dealing with deferred taxes, which of the following does not need to be disclosed in a companyâs financial statements?
I. The nature and amount of each type of operating loss and tax credit carryforward.
II. The types and amount of existing temporary differences.
III. The types and amounts of existing permanent differences.
a. I, II, and III
b. I and II only
c. III only
d. I only
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Related questions
1. Sork Inc. has a portfolio of marketable securities classified as available-for-sale securities. At the end of the year, the fair values of the securities exceeded their costs. How should Sork report the unrealized gains on its portfolio of marketable securities in the statement of stockholdersâ equity?
I. Only the cumulative amount of net gains are reported in the statement of stockholdersâ equity.
II. Only current period changes in the value of the investment are reported in the statement of stockholdersâ equity.
III. A correct journal entry to report unrealized gains would be an increase to the investment and an increase to other comprehensive income.
Multiple Choice
a. I and III only
b. II and III only
c. I only
d. III only
2. During 20X9, Alpha Co. purchased debt securities classified as trading securities. At the end of 20X9, the market value of Alphaâs investment in debt securities exceeded the amortized cost. Alpha should report the debt securities on its 20X9 balance sheet at
Multiple Choice
a. Amortized cost
b. Market value
c. Cost
d. Lower of cost or market
3. Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities:
I. Debt securities bought and held for the purposes of reselling in the near future.
II. U.S. Treasury bonds that Misk intends and is able to hold to maturity.
III. Convertible preferred stock that Misk does not intend to sell in the near future.
Which of above securities purchased by Misk should be classified as available-for-sale securities?
Multiple Choice
a. I and II only
b. I and III only
c. III only
d. None of the above
4. Data regarding Rock Corp.âs available-for-sale securities follows:
| Cost | Market Value | ||||||
| December 31, 20X7 | $ | 80,000 | $ | 65,000 | |||
| December 31, 20X8 | $ | 80,000 | $ | 90,000 | |||
Differences between cost and market values are considered temporary. Rock does not elect the fair value option of accounting for available-for-sale securities.
Rockâs accumulated other comprehensive income would be
Multiple Choice
a. $0
b. $10,000
c. $25,000
d. $15,000
| 1. Which of the following statements concerning federalgift and estate taxes is (are) correct? I. The donorâs gross estate includes the amount of any gifttaxes paid by the donor on gifts made within 3 years of death. II. Gifts made within 3 years of death are brought back into thedonorâs gross estate. a) I only b) II only c) Both I and II d) Neither I nor II |
| 2. Which of the following statements concerning statedeath taxes is (are) correct? I. The federal state death tax deduction is allowed only if afederal estate tax Form 706 return must be filed. II. State estate and inheritance taxes are generally imposed atthe same rate regardless of the relationship of the deceased to thebeneficiary. a) I only b) II only c) Both I and II d) Neither I nor II |
| 3. Important factors in assessing liquidity needs inestate planning include which of the following? I. the amount and terms of debt of the estate owner II. the marital status of the testator a) I only b) II only c) Both I and II d) Neither I nor II |
| 4. Non-tax benefits of lifetime gifts include which ofthe following? I. obtaining privacy that is not possible when testamentarytransfers are made II. reducing probate and administrative costs a) I only b) II only c) Both I and II d) Neither I nor II |
I need help with this question. I have done my calculations andalways get $356,000 Deferred Tax Liability but when I submit myanswer I got it wrong.
At December 31, 2016, Nash Company had a net deferred taxliability of $352,400. An explanation of the items that composethis balance is as follows.
| Temporary Differences | Resulting Balances in Deferred Taxes |
| Excess of tax depreciation over book depreciation | $181,300 |
| Accrual, for book purposes, of estimated loss contingency frompending lawsuit that is expected to be settled in 2017. The losswill be deducted on the tax return when paid. | (54,000) |
| Accrual method used for book purposes and the installmentmethod used for tax purposes for an isolated installment sale of aninvestment. | 225,100 |
| $352,400 |
In analyzing the temporary differences, you find that $31,400 ofthe depreciation temporary difference will reverse in 2017, and$126,000 of the temporary difference due to the installment salewill reverse in 2017. The tax rate for all years is 40%.
Indicate the manner in which deferred taxes should be presented onNash Companyâs December 31, 2016, balance sheet.
