WHICH OF THE FOLLOWING IS REQUIRED TO ADJUST ELEPHANT, INC.S DEFERRED TAX ASSET TO ITS CORRECT BALANCE AT DECEMBER 31, 2012?

11 May WHICH OF THE FOLLOWING IS REQUIRED TO ADJUST ELEPHANT, INC.S DEFERRED TAX ASSET TO ITS CORRECT BALANCE AT DECEMBER 31, 2012?

Which
of the following is required to adjust Elephant, Inc.s deferred tax asset to
its correct balance at December 31, 2012?

a.
A
debit of $41,600
b.
A
credit of $30,400
c.
A
debit of $30,400
d.
A
debit of $33,600

78.
The
ending balance in Elephant, Incs deferred tax liability at December 31, 2012
is

a.
$18,400

b.
$30,400

c.
$20,800

d.
$62,400

Use the following information for
questions 79 and 80.

Rowen, Inc. had pre-tax accounting income of $1,350,000
and a tax rate of 40% in 2013, its first year of operations. During 2013 the
company had the following transactions:

Received rent from Jane, Co. for
2014

$48,000

Municipal bond income

$60,000

Depreciation for tax purposes in
excess of book

$30,000

depreciation

Installment
sales revenue to be collected in

$81,000

2014

79.
For
2013, what is the amount of income taxes payable for Rowen, Inc?

a.
$452,400

b.
$490,800

c.
$514,800

d.
$579,600

To download more slides, ebook, solutions and test bank, visit
http://downloadslide.blogspot.com

19 – 20 Test Bank for Intermediate Accounting,
Fourteenth Edition
1clip_image002.gif”>
80.
At
the end of 2013, which of the following deferred tax accounts and balances is
reported on Rowen, Inc.s balance sheet?

Account

_

Balance

a.

Deferred
tax asset

$19,200

b.

Deferred tax liability

$19,200

c.

Deferred tax asset

$31,200

d.

Deferred tax liability

$31,200

81.
Based
on the following information, compute 2013 taxable income for South Co.
assuming

that
its pre-tax accounting income for the year ended December 31, 2013 is $460,000.

Temporary difference

Future taxable

(deductible)
amount

Installment
sales

$384,000

Depreciation

$120,000

Unearned rent

($400,000)

a.
$564,000

b.
$356,000

c.
$964,000

d.
$444,000

72.
Assuming
that income tax payable for 2013 is $120,000, the income tax expense for 2013
would be what amount? a.
$162,000
b.
$134,000
c.
$120,000
d.
$106,000
Use the following information for
questions 73 and 74.Kraft
Company made the following journal entry in late 2012 for rent on property it
leases to Danford Corporation.Cash90,000Unearned Rent Revenue90,000The
payment represents rent for the years 2013 and 2014, the period covered by the
lease. Kraft Company is a cash basis taxpayer. Kraft has income tax payable of
$138,000 at the end of 2012, and its tax rate is 35%.73.
What
amount of income tax expense should Kraft Company report at the end of 2012? a.
$79,500
b.
$106,500
c.
$122,250
d.
$169,500
74.
Assuming
the income taxes payable at the end of 2013 is $153,000, what amount of income
tax expense would Kraft Company record for 2013? a.
$121,500
b.
$137,250
c.
$168,750
d.
$184,500
75.
The
following information is available for Kessler Company after its first year of
operations: Income before taxes$250,000Federal
income tax payable$104,000Deferred
income tax(4,000)Income
tax expense100,000Net income$150,000Kessler
estimates its annual warranty expense as a percentage of sales. The amount
charged to warranty expense on its books was $105,000. Assuming a 40% income
tax rate, what amount was actually paid this year for warranty claims?a.
$115,000