The Chance Comapny began operations in 2016 and, for that calender year, reporte
ID: 2598680 • Letter: T
Question
The Chance Comapny began operations in 2016 and, for that calender year, reported an operating loss of $200,000. Due to sufficient verifiable positive evidence, no valuation allowance was estimated to reduce the deferred tax asset as of December 31, 2016. During 2017, Chance reported pretax accounting income of $375,000. Assuming an income rate of 35%, what should Chance record in 2017 as income tax payable at the end of 2017?
a. $0 b. $70,000 c. $61,250 d. $131,250
Intra-period tax allocation would be appropriate for all of the following except
a. An unrecongnized gain on available-for-sale securities b. A loss from operations of a discounted segment.
c. Retrospective adjustments d. A loss from impairment of a long-lived asset
Which of the following items attrutable to a defined benefit pension plan would be recognized on a company's balance shet?
Projected Benefit Obligation Pension Plan Assets Prepaid Pension Costs
I. Yes Yes Yes
II. Yes Yes No
III. Yes No No
IV. No No Yes
a. I b. II c. III d. IV
A pension plan provides for future retirement income based on the employlee's earnings and length of service with the company. This type of pension plan is termed a :
a. Contributory plan b. Defined contribution plan c. Noncontributory plan d. defined beneift plan
As a generalized statement regarding lease accounting, which statement best compares U.S. GAAP and IFRS?
a. IFRS for leases are more principle-based than GAAP
b. IFRS for leases are more rules-based than GAAP
c. IFRS and GAAP are similarly rules-based
d. IFRS and GAAP are similarly principles-based
Explanation / Answer
1. what should Chance record in 2017 as income tax payable at the end of 2017?
Ans.C.
Explanation:
($375000 - $200000) x 35% = $61250