Solution-What amount should SI record on its statement

What amount should SI record on its statement

Assignment Help Accounting Basics

Reference no: EM132760104

Question - Seymour Inc. (SI) purchased land and buildings on January 1, 20X5. The cost allocated to the building was $350,000. SI is depreciating the building on a straight-line basis over its estimated useful life of 20 years using an estimated residual value of $0. SI claimed a deduction for CCA of $14,000 on its 20X5 tax return; $13,400 on its 20X6 tax return; and $12,900 on its 20X7 tax return. SI's combined tax rate is 30%. What amount should SI record on its statement of financial position as at December 31, 20X7, pertaining to the temporary difference on the building?

a. $4,600 deferred tax asset

b. $12,200 deferred tax asset

c. $3,660 deferred tax asset

d. $1,380 deferred tax asset

Reference no: EM132760104

Questions Cloud

Discuss why accounting standard setters allow : Using examples, critically discuss why accounting standard setters allow for some discretion in how financial statements are prepared.

Find what account balance at the end of the second year : Find what would be his account balance at the end of the second year? Rahul deposits ?10,000 in a bank, which offers him an interest of 10% compounded annually.

What are nvivo and hyperresearch mostly used for : What are Nvivo and HyperResearch mostly used for? What details differentiate both if any when conducting a qualitative research?

What triggered the defaults of subprime loans : What triggered the defaults of subprime loans? In other words, what conditions in the economy began the process of defaults in the subprime market?

What amount should SI record on its statement : What amount should SI record on its statement of financial position as at December 31, 20X7, pertaining to the temporary difference on the building

Why a flexible budget is better than a static budget : Assume you have been assigned to a team responsible for using the flexible budget to assist in determining managers' bonuses. When you approach the production.

Which of the benefits provided by an employer is considered : Which of the benefits provided by an employer is considered part of employment income - Canada? subsidized meals provided in employer facilities

What is unique about computers as far as ethical issues : What is unique about computers as far as ethical issues? How do policy vacuums (computer ethics) come about?

Why do we need statement of cash flows : Why do we need Statement of Cash Flows? Statement of Cash Flows tracks net changes in cash flow. Transactions are grouped into 3 categories, Operating.

User Account

All Pages

What amount should SI record on its statement

Reference no: EM132760104

Reference no: EM132760104

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT