Questions from Intermediate Accounting

Q: Archer Construction Company began work on a $420,000 construction

Archer Construction Company began work on a $420,000 construction contract in 2017. During 2017, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At Decembe...

Q: On January 2, 2017, Adani Inc. sells goods to

On January 2, 2017, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $11,000, with payment due in 12 months. The fair value of the goods at the dat...

Q: In 2017, Amirante Corporation had pretax financial income of $168

In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes...

Q: Clydesdale Corporation has a cumulative temporary difference related to depreciation of $

Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000 at December 31, 2017. This difference will reverse as follows: 2018, $42,000; 2019, $244,000; and 2020,...

Q: At December 31, 2017, Fell Corporation had a deferred tax

At December 31, 2017, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2018, a new income tax act i...

Q: Carow Corporation purchased on January 1, 2017, as a held

Carow Corporation purchased on January 1, 2017, as a held-to-maturity investment, $60,000 of the 8%, 5-year bonds of Harrison, Inc. for $65,118, which provides a 6% return. The bonds pay interest semi...

Q: Conlin Corporation had the following tax information. /

Conlin Corporation had the following tax information. In 2018, Conlin suffered a net operating loss of $480,000, which it elected to carry back. The 2018 enacted tax rate is 29%. Prepare Conlin&acir...

Q: Rode Inc. incurred a net operating loss of $500,

Rode Inc. incurred a net operating loss of $500,000 in 2017. Combined income for 2015 and 2016 was $350,000. The tax rate for all years is 40%. Rode elects the carryback option. Prepare the journal en...

Q: Use the information for Rode Inc. given in BE19-13

Use the information for Rode Inc. given in BE19-13. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years. Prepare all the journal...

Q: Youngman Corporation has temporary differences at December 31, 2017, that

Youngman Corporation has temporary differences at December 31, 2017, that result in the following deferred taxes. Deferred tax liability related to depreciation difference…………$38,000 Deferred tax asse...