Questions from Intermediate Accounting

Q: Oxford Corporation began operations in 2017 and reported pretax financial income of

Oxford Corporation began operations in 2017 and reported pretax financial income of $225,000 for the year. Oxford’s tax depreciation exceeded its book depreciation by $40,000. Oxford’s tax rate for 20...

Q: Using the information from BE19-2, assume this is the

Using the information from BE19-2, assume this is the only difference between Oxford’s pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred...

Q: At December 31, 2017, Percheron Inc. had a deferred

At December 31, 2017, Percheron Inc. had a deferred tax asset of $30,000. At December 31, 2018, the deferred tax asset is $59,000. The corporation’s 2018 current tax expense is $61,000. What amount sh...

Q: At December 31, 2017, Hillyard Corporation has a deferred tax

At December 31, 2017, Hillyard Corporation has a deferred tax asset of $200,000. After a careful review of all available evidence, it is determined that it is more likely than not that $60,000 of this...

Q: Mitchell Corporation had income before income taxes of $195,000

Mitchell Corporation had income before income taxes of $195,000 in 2017. Mitchell’s current income tax expense is $48,000, and deferred income tax expense is $30,000. Prepare Mitchell’s 2017 income st...

Q: Shetland Inc. had pretax financial income of $154,000

Shetland Inc. had pretax financial income of $154,000 in 2017. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, deprecia...

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

At December 31, 2017, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31, 2018, the deferred tax liability is $42,000. The corporation’s 2018 current tax expense is $48,000....

Q: AMR Corporation (parent company of American Airlines) reported the following

AMR Corporation (parent company of American Airlines) reported the following (in millions). Service cost…………………………….$366 Interest on P.B.O………………………737 Return on plan assets………………..593 Amortization of...

Q: Manno Corporation has the following information available concerning its postretirement benefit plan

Manno Corporation has the following information available concerning its postretirement benefit plan for 2017. Service cost………………………………………………………$40,000 Interest cost……………………………………………………….47,400 Actua...

Q: For 2017, Sampsell Inc. computed its annual postretirement expense as

For 2017, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell’s contribution to the plan during 2017 was $180,000. Prepare Sampsell’s 2017 entry to record postretirement exp...