ACC 545 STUDY Extraordinary Success/acc545study.com ACC 545 STUDY Extraordinary Success/acc545study.c | Página 4

4) Presenting consolidated financial statements this year when statements of individual companies were presented last year is 5) During 2008, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. The following lists include gross profit figures under both methods for the past 3 years: 6) On January 1, 2005, Baden Co. purchased a machine, which was its only depreciable asset, for $300,000. The machine has a 5-year life, and no salvage value. Sum-of-the-years'-digits depreciation has been used for financial statement reporting and the elective straight- line method for income tax reporting. Effective January 1, 2008, for financial statement reporting, Baden decided to change to the straight-line method for depreciation of the machine. Assume that Baden can justify the change. 7) The deferred tax expense is the 8) A company records an unrealized loss on short-term securities. This might result in what type of difference and in what type of deferred income tax?