Exercise 16-4 (Algo) Taxable income given; calculate deferred tax liability from book-tax difference [LO16-2] Ayres Services acquired an asset for $112 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 2021 Cumulative Temporary Difference Deferred Tax Liability $350 28 (53) $325 ($ in millions) 2022 2023 2024 $370 $385 $420 28 28 28 (29) (19) (11) $369 $394 $437 Required: For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Enter your answers in millions rounded to 2 decimal place (i.e., 5,500,000 should be entered as 5.50).) Beginning of 2021 End of 2021 End of 2022 End of 2023 End of 2024

Exercise 16-4 (Algo) Taxable income given; calculate deferred tax liability from book-tax difference [LO16-2] Ayres Services acquired an asset for $112 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: Pretax accounting income Depreciation on the income statement Depreciation on the tax return Taxable income 2021 Cumulative Temporary Difference Deferred Tax Liability $350 28 (53) $325 ($ in millions) 2022 2023 2024 $370 $385 $420 28 28 28 (29) (19) (11) $369 $394 $437 Required: For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account. (Leave no cell blank, enter "0" wherever applicable. Enter your answers in millions rounded to 2 decimal place (i.e., 5,500,000 should be entered as 5.50).) Beginning of 2021 End of 2021 End of 2022 End of 2023 End of 2024

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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question 43 choose the correct answer from the choices
Q23
F2
A, B, C
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: A) B) Product X yes yes no no Units produced Per unit sales value at split-off Added processing costs per unit Per unit sales value if processed further The cost of the joint raw material input is $90,000. Which of the products should be processed beyond the split-off point? Product Y yes no yes yes Product X 2,700 $ 25.00 $ 2.00 $31.00 Product Z no yes no yes Product Y 3,200 $ 28.00 $ 4.00 $31.00 Product Z 4,200 $ 27.00 $4.00 $36.00
G and H are mutually exclusive events. P (G) = 0.5 P (H) = 0.3 P( H | G) = 0.6 Find P (H OR G) Are G and H independent or dependent events? why?
F1
mn.3 answer must be in proper fomat or i will give down vote
why did you not answer b?
E x p l a i n t h e l i m i t a t i o n s o f b r e a k e v e n a n a l y s i s.