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differences. Assuming the U.S. tax rate is 35% and no valuation
allowance is required, what is North's deferred income tax asset
reported on its financial statements for 2010?
Question 20
How are deferred tax liabilities and assets categorized on the
balance sheet?
Question 21
Hot, Inc.'s primary competitor is Cold, Inc. When comparing
relative deferred tax asset and liability accounts with Cold, which
of the following should Hot do?
Question 22
Paint, Inc., a domestic corporation, owns 100% of Blue, Ltd., a
foreign corporation and Yellow, Inc., a domestic corporation.
Paint also owns 40% of Green, Inc., a domestic corporation. Paint
receives no distributions from any of these corporations. Which of
these entities' net income are included in Paint's income statement
for current year financial reporting purposes?
Question 23
Nocera, Inc. earns book net income before tax of $600,000 in
2010. Nocera acquires a depreciable asset in 2010 and first year
tax depreciation exceeds book depreciation by $120,000. Nocera
has no other temporary or permanent differences. Assuming the
U.S. tax rate is 35%, what is Nocera's total income tax expense
reported on its financial statements for 2010?
Question 24
Which of the following items are not included in the income tax
note for a publicly traded company?
Question 25
Larson, Inc., hopes to report a total book tax expense of $160,000
in the current year. This $160,000 expense consists of $240,000 in
current tax expense and an $80,000 tax benefit related to the
expected future use of an NOL by Larson. If the auditors
determine that a valuation allowance of $30,000 must be placed
against Larson's deferred tax assets, what is Larson's total book
tax expense?
ACC 499 Final Exam Part 2 (Set 3)
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