Questions from Financial Reporting

Q: Over the past two years, Madison Corporation has accumulated operating loss

Over the past two years, Madison Corporation has accumulated operating loss carryforwards of $66,000. This year, 2017, Madison’s pre-tax book income is $101,500. The company is subje...

Q: For its third year of operations, 2017, Delilah Corp.

For its third year of operations, 2017, Delilah Corp. is reporting pre-tax book income of $223,000. The following items are relevant to Delilah’s deferred tax computations: Required: 1. In 2017, Deli...

Q: Moss Inc. follows GAAP for financial reporting purposes and appropriately uses

Moss Inc. follows GAAP for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. It reported $250,000 of pre-tax income under GAAP, but it w...

Q: West Corporation leased a building and received the $36,000

West Corporation leased a building and received the $36,000 annual rental payment on July 15, 2017. The beginning of the lease period was August 1, 2017. Rental income is taxable when received. West h...

Q: Quinn Company reported a net deferred tax asset of $10,

Quinn Company reported a net deferred tax asset of $10,500 in its December 31, 2016, balance sheet. For 2017, Quinn reported pre-tax financial statement income of $300,000. Temporary differences of $1...

Q: The following graph depicts three depreciation expense patterns over time.

The following graph depicts three depreciation expense patterns over time. Pattern I, of course, is straight-line depreciation. Which depreciation expense pattern corresponds to the sum-of-the-yea...

Q: In Figland Company’s first year of operations (2017), the company

In Figland Company’s first year of operations (2017), the company had pre-tax book income of $500,000 and taxable income of $800,000. Figland’s only temporary difference is for accrued product warrant...

Q: During 2017, Orr Company incurred the following costs:

During 2017, Orr Company incurred the following costs: Research and development services performed by Key Corporation for Orr ……… $150,000 Design, construction, and testing of preproduction prototyp...

Q: Refer to the Delta Air Lines financial statement information contained in C12

Refer to the Delta Air Lines financial statement information contained in C12-1. 1. Explain how the financial statements and disclosures would change if Delta were using IAS 17 instead of FASB ASC 840...

Q: Walgreens Boots Alliance, Inc. is a global pharmacy-led

Walgreens Boots Alliance, Inc. is a global pharmacy-led health and well-being enterprise. It has 13,100 stores in 11 countries. Walgreens Boots Alliance was incorporated in 2014 and is the successor t...