Intermediate Accounting 2

3313 Review Questions 1. During the inauguralborn after part of 2009, tech Co. had income before appraisees of $200,000, and its intelligent income valuate target was 15%. techs 2008 effective income tax reckon was 15%. Techs 2008 ladened yearbook income tax rate was 30%, but Tech expects its 2009 effective annual income tax rate to be 25%. In its offshoot-class honours degree one-fourth interim income statement, what meter of capital of income tax expense should Tech report? a. $0 b. $30,000 c. $50,000 d. $60,000 2. Bailey Company, a calendar-year corporation, has the pastime income before income tax provision and estimated effective annual income tax rates for the first three derrieres of 2009: rump beginning(a) 2nd 3rd income before tax $60,000 $70,000 $40,000 estimated effective annual tax rate at end of shadower 20% 40% 45% Baileys income tax provision in its interim statement for the terce quarter should be a. b. c. d. $18,000 24,500 25,500 76,5 00 3. An immortalise loss from a market cost decline occurred in the first quarter. The loss was not expected to be restored in the fiscal year. However, in the triplet quarter the inventory had a market outlay recovery that exceeded the market decline that occurred in the first quarter. For interim financial reporting, the dollar come of chou inventory should a.

Decrease in the first quarter by the step of the market legal injury decline and increase in the third quarter by the amount of the market value recovery. b. Decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of decrease in the first quarter. c. Not be affected in the first quarter and increas! e in the third quarter by the amount of the market price recovery that exceeded the amount of the market price decline. d. Not be affected in either the first quarter or the third quarter. 4. For interim financial reporting, a companys income tax provision for the second quarter of 2009 should be determined using the a. Effective tax rate expected to be applicable...If you want to get a candid essay, order it on our website: OrderEssay.net

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