PROBLEM 3: EXERCISES 1. Park Co. has the following information for the current year: Pretax income ● • Penalty on late filing of income tax return Interest on borrowings incurred to acquire tax- exempt securities Interest income on government securities Excess of tax depreciation over book depreciation Excess of revenue recognized over taxable income Excess of provision over actual expenditures Advanced rent received (taxable upon receipt) Unrealized loss on change in fair value of investment Temporary differences as at the beginning of the year Income tax rate 900,000 30,000 3,000 9,000 60,000 45,000 54,000 12,000 18,000 30%

PROBLEM 3: EXERCISES 1. Park Co. has the following information for the current year: Pretax income ● • Penalty on late filing of income tax return Interest on borrowings incurred to acquire tax- exempt securities Interest income on government securities Excess of tax depreciation over book depreciation Excess of revenue recognized over taxable income Excess of provision over actual expenditures Advanced rent received (taxable upon receipt) Unrealized loss on change in fair value of investment Temporary differences as at the beginning of the year Income tax rate 900,000 30,000 3,000 9,000 60,000 45,000 54,000 12,000 18,000 30%

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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