Rowen, Inc. had pre-tax accounting income of $1,672,000 and a tax rate of 40% in 2015, its first year of operations. During 2015 the company had the following transactions: Received rent from Jane, Co. for 2016 $64,000 Municipal bond income $80,000 Depreciation for tax purposes in excess of book depreciation $40,000 Installment sales revenue to be collected in 2016 $108,000 6. At the end of 2015, which of the following deferred tax accounts and balances is reported on Rowen, Inc.’s balance sheet? Account Balance a. Deferred tax asset $32,000 b. Deferred tax liability $32,000 c. Deferred tax asset $59,200 d. Deferred tax liability $59,200
Rowen, Inc. had pre-tax accounting income of $1,672,000 and a tax rate of 40% in 2015, its first year of operations. During 2015 the company had the following transactions: Received rent from Jane, Co. for 2016 $64,000 Municipal bond income $80,000 Depreciation for tax purposes in excess of book depreciation $40,000 Installment sales revenue to be collected in 2016 $108,000 6. At the end of 2015, which of the following deferred tax accounts and balances is reported on Rowen, Inc.’s balance sheet? Account Balance a. Deferred tax asset $32,000 b. Deferred tax liability $32,000 c. Deferred tax asset $59,200 d. Deferred tax liability $59,200
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Rowen, Inc. had pre-tax accounting income of $1,672,000 and a tax rate of 40% in 2015, its first year of operations. During 2015 the company had the following transactions:
Received rent from Jane, Co. for 2016 | $64,000 |
Municipal bond income | $80,000 |
$40,000 | |
Installment sales revenue to be collected in 2016 | $108,000 |
6. At the end of 2015, which of the following
Account | Balance | |
a. |
$32,000 | |
b. |
$32,000 | |
c. Deferred tax asset | $59,200 | |
d. Deferred tax liability | $59,200 |
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