+1-415-670-9189
info@expertsmind.com
Cumulative temporary differences
Course:- Accounting Basics
Reference No.:- EM13130413




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

At December 31, 2006, DePaul Corporation had a $16 million balance in its deferred tax asset account and a $68 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences:

1. Estimated warranty expense, $15 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty).

2. Depreciation expense, $120 million: straight-line on the income statement; MACRS on the tax return.

3. Income from installment sales of properties, $50 million: income recorded in the year of the sale; taxable when received equally over the next five years.

4. Bad debt expense, $25 million: allowance method for accounting; direct write-off for tax purposes.

Required:

Show how any deferred tax amounts should be classified and reported on the 2006 balance sheet. The tax rate is 40%.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Trikeco, a domestic corporation, manufactures mountain bicycles for sale both in the United States and Europe. Trikeco operates in Europe through Trike1, a wholly owned Ital
Joseph DeLapa, DDS, opened his practice on June 1, 2013. He had the following transactions during the 3 month period June 1 August 31. Record the transactions in general jou
MAcc 652  Using the Valuation Software (Fall 2016). To utilize the UPS data file you will need to open excel on your computer. Click on file in the upper left hand corner to
Prepare journal entries to record the October transactions in the General Journal below. Remember that Debits must equal Credits-All of your Journal Entries should balance -
Use the Internet to research the current provisions and proposed changes reflected in the exposure draft for lease accounting under generally accepted accounting principles (G
Recommend two controls that you would establish at Koss Corporation over electronic fund transfers. Indicate how each of the recommended controls would minimize the exposu
1.why are top management support and cross-functional involvement crucial when attempting to implement an activity-based costing system? 2. why is the activity-based costing
Abraham, Inc., a New Jersey corporation, operates 57 bakeries throughout the northeastern section of the United States. In the past, its founder, James Abraham, owned all