ACC 423 Final Exam Guide 2 For more course tutorials visit www. tutorialrank. com
Question 30
Clydesdale Corporation has a cumulative temporary difference related to depreciation of $ 606,600 at December 31, 2012. This difference will reverse as follows: 2013, $ 43,100; 2014, $ 264,300; and 2015, $ 299,200. Enacted tax rates are 34 % for 2013 and 2014, and 40 % for 2015. Compute the amount Clydesdale should report as a deferred tax liability at December 31, 2012.
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ACC 423 Final Exam Guide 2 For more course tutorials visit www. tutorialrank. com
1) When the cash proceeds from a bond issued with detachable stock warrants exceed the sum of the par value of the bonds and the fair market value of the warrants, the excess should be credited to
A. premium on bonds payable. B. retained earnings. C. a liability account. D. additional paid-in capital from stock warrants. 2) The conversion of preferred stock may be recorded by the A. par value method. B. book value method. C. market value method. D. incremental method.