Questions from Intermediate Accounting

Q: Mazur Corp. follows IFRS and began operations in 2017 and reported

Mazur Corp. follows IFRS and began operations in 2017 and reported accounting income of $275,000 for the year. Mazur’s CCA exceeded its book depreciation by $40,000. Mazur’s tax rate for 2017 and year...

Q: Many business organizations have been concerned with providing for employee retirement since

Many business organizations have been concerned with providing for employee retirement since the late 1800s. During recent decades, a marked increase in this concern has resulted in the establishment...

Q: Using the information from BE18-3, calculate the effective rate

Using the information from BE18-3, calculate the effective rate of income tax for Nilson Inc. for 2017. Also make a reconciliation from the statutory rate to the effective rate, using percentages. Da...

Q: Myers Corp. purchased depreciable assets costing $30,000 on

Myers Corp. purchased depreciable assets costing $30,000 on January 2, 2017. For tax purposes, the company uses CCA in a class that has a 30% rate. For financial reporting purposes, the company uses s...

Q: At December 31, 2017, Watzman Inc. owned equipment that

At December 31, 2017, Watzman Inc. owned equipment that had a book value of $178,000 and a tax base of $136,000 due to the use of different depreciation methods for accounting and tax purposes. The en...

Q: Using the information from BE18-5, and assuming that the

Using the information from BE18-5, and assuming that the $40,000 difference is the only difference between Mazur’s accounting income and taxable income, prepare the journal entries to record the curre...

Q: Scott Enterprises Inc. sponsors a defined benefit plan for its 500

Scott Enterprises Inc. sponsors a defined benefit plan for its 500 employees. On December 31, 2017, the company’s actuary provided the following information related to the plan: defined benefit obliga...

Q: Refer to the data for Duster Corporation’s defined benefit pension plan in

Refer to the data for Duster Corporation’s defined benefit pension plan in BE19-9. Now assume that the company follows ASPE instead of IFRS. Determine the 2017 effect of the pension plan on pension ex...

Q: At January 1, 2017, Rui Corporation had plan assets of

At January 1, 2017, Rui Corporation had plan assets of $250,000 and a defined benefit obligation of the same amount based on projected costs. During 2017, the current service cost was $27,500, the dis...

Q: Refer to the data provided about Rui Corporation’s pension plan in BE19

Refer to the data provided about Rui Corporation’s pension plan in BE19-11. Prepare a pension work sheet for Rui Corporation for 2017 assuming the company applies ASPE. Data from BE19-11: At January...