Choose the correct answer- 1)Which of the following are deferred tax assets (select all that apply)?...

Question

Question

Choose the correct answer- 1)Which of the following are deferred tax assets (select all that apply)?...

Choose the correct answer-

1)Which of the following are deferred tax assets (select all that apply)?

A.Inventory reserves for obsolescence

B. Accelerated depreciation methods for tax purposes

C. Installment sales from real estate transaction

D. Non-deductible accrued warranty loss provisions

2)Service costs will:

A. Increase the PBO and increase the pension expense

B.Increase pension expense and decrease accumulated other comprehensive income

C.Increase the pension expense and reduce plan assets

D.Increase the PBO and reduce plan assets

3)Calculating a PBO is not relevant for which of the following types of plans (select all that apply)?

A. 401k profit share plans

B. Defined contribution plan

C. Union defined benefit plan

D. Individual retirement accounts (IRA’s)

4)If a tax deferral originates in 2017, it will cause taxable income for 2017 to be ____________ pretax

financial income for 2017?

A.Higher than

B.Lower than

C.None of the above

business accounting

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Answer 1

Answer #1

Answer :

(1). Answer is B and C

Explanation: Inventory reserves are not deductible. Warranty loss provision is non - deductible

(2). Answer is A

Explanation: It is Standardized

(3). C and D

Explanation: PBO is not relevant in these plans.

(4). B. Lower than

Explanation: Because liability will be paid in future

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Answer 2

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