Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock options at the time of the exercise of such option.

Q: When calculating the after-tax weighted average cost of capital, which of the following has to be…

A: Weighted average cost of capital: It implies to a rate at which the average return is expected to be…

Q: Which of the following statements is correct?     Earnings and profits are exactly the same as…

A: Amount paid to the shareholders by the company from the profits earned is called dividends. Out of…

Q: Which of the following is taxable compensation?  A. Commissions B. Honoraria C. Gains on exercise…

A: Taxable Compensation / Income - It is the amount of money earned during the particular period upon…

Q: If the employee has the choice as to whether the settlement is in cash or by issuance of equity…

A: The question is related to IFRS 2 Share based payment.

Q: Question 3 An entity recognises a loss on the derivatives designated as cash flow hedges in the…

A: An entity has recognized a loss of 3,700 on derivatives used as cash flow hedges. This loss was…

Q: Question 5 Which of the following would be deducted in determining an employee's net pay? O FUTA…

A: Some taxes are deducted by employer from employee salary and paid to the government and net salary…

Q: What is the proper treatment for noncash asset received from a non-stockholder? Group of answer…

A: Accounting entry to be made for noncash asset received from a non-stockholder: Debit Noncash Assets…

Q: Deductions from gross income are allowed to the following income earners, except:  a. Compensation…

A: Gross income refers to the income earned by the entity exclusive of any deduction.

Q: Which item, if it exists, is NOT required to be presented as a line item on the face of statement of…

A: The statement of profit or loss is prepared at the end of the accounting period and it is also a…

Q: Under the equity method, the investor

A: Investment shows the amount provided in a project or securities with the expectation of something in…

Q: evaluate the impact of tax rate changes on a company’s fi nancial statements and ratios;

A: Changes to the income tax rate can significantly impact a company’s financial statements and the…

Q: An investment in an associate is normally accounted for using the equity accounting method. This…

A: Whenever investor invests in shares and stock of other company, then ownership rights can be 20%,…

Q: 29. These pertain to items of income that are excluded in the computation of regular income tax * a.…

A: Solution Note dear student as per the Q&A guideline we are required to answer the first question…

Q: What are interest received and dividends received in accounting (tax)? Also, please describe…

A: Interest received and dividends received in accounting and taxation refer to two different types of…

Q: 1. Which of the following are recognized as a liability? I. Cash dividends payable II. Scrip…

A: Note:- Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Statement 1: When the residual value is guaranteed by the lessee, the lessor shall include the same…

A: sale and lease back is a simple financial transaction which allows a person to leave the Asset to…

Q: An increase in OCI related to plan assets occurs when:   Select one: a. The accumulated benefit…

A: The information given is a question related to Plan Assets and Deferred Obligation Accounting.

Q: In an equity-settled transaction, if the total compensation changes in the subsequent period, the…

A: Under share based payment, if during subsequent period, total compensation changes then that change…

Q: Why should executory contracts be disclosed in the financial statements? Group of answer choices…

A: Executory contracts are contracts under which neither party has performed any of its obligations or…

Q: Which of the following types of income is typically subject to capital gains tax instead of ordinary…

A: Capital gains tax is applied to the difference between the purchase price and the sale price of an…

Q: The income earned by an investment company is taxed: Select one: O a. at the corporate and…

A: Investment Company- A corporation that issues or invests in stocks and bonds is known as an…

Q: a) Which of the following is a financial instrument' as defined by MFRS 9? Give reasons for your…

A: Financial Instruments are contracts which include monetary transactions between different…

Q: 7 How should deferred taxes be presented on the balance sheet? As current components of…

A: Deferred tax arises whenever there is a difference between the carrying amount of the…

Q: True or False 1. A cash dividend declared before the balance sheet date when the date of record is…

A: Deferred tax is a fictitious asset or liability that reflects corporate personal income tax on a…

Q: taxation policy? The average tax rate and the marginal tax rate are the same under the Select one: O…

A: Regressive Tax Policy: This form of taxation is progressive, meaning that the tax rate decreases as…

Q: True or false: the investor will be eligible to receive the dividends when he/she buy the company…

A: Meaning of Dividend It  is a distribution of stock or cash to the shareholders of a company.…

Q: Under the equity method, the investor must debit the Equity Investments account when a dividend is…

A: Equity method is used by the investor company when the percentage of investment in the common stock…

Q: When using the discrete view to prepare interim statements, two exceptions that are permitted deal…

A: A company's financial reports for a period less than a complete fiscal year, often a quarter or six…

Q: the purpose of grossing up of Interests in calculating taxable income from Int

A: Taxable income refers to the sum value of money gained by an entity on which the government implies…

Q: When does a dividend become a liability

A: Dividend: dividend is the portions of profit given to the shareholders by the company Major days in…

Q: Which of the following types of income is not subject to the "kiddie tax"?

A: Solution:- Kiddie Tax:- The Kiddie tax is tax on child's unearned income. "If the child's unearned…

Q: PFRS 9 permits an entityto make an irrevocable election to present in other comprehensive income…

A: Solution: According to PFRS 9, "An entity may make an irrevocable election to present in other…

Q: The account that should be credited for the total income tax withheld from employee's earnings is o…

A: The objective of the question is to identify the correct account that should be credited when the…

Q: Question 18 of 30. Distributable net income (excluding tax-exempt ir Serves as the upper limit on…

A: Distributable Net Income The amount of a trust's income allocated to the beneficiaries is known as…

Q: Sale of an capital assets is subject to

A: Option a is wrong because regular income tax is applied in case of income from salary, business or…

Q: f stock is issued for an asset other than cash the asset should be recorded on the books of the…

A: SOLUTION- CURRENT MARKET VALUE OF ASSET  GIVES PARTIES INTERESTED IN MAKING A TRANSACTION THE…

Q: 19. Which of the following statements are true? a. Qualified dividends are part of the total…

A: A. Qualified dividends are part of the total ordinary dividends. This statement is true. Qualified…

Q: PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income…

A: Changes in fair value are generally recognized in profit or loss, but in some cases they are…

Q: Determine if this shall result in recognition of liabilities 11. withholding of taxes on employees'…

A: The employer will need to pay the amount  of tax withhold on employees compensation to government.

Q: Determine if this shall result in recognition of liabilities 8.Declaration of property dividends on…

A: The dividend is declared to the shareholders from the retained earnings of the business.

Q: . Define:

A: A]-MINIMUM WAGE A pay is that the lowest remuneration that employers will lawfully pay their…

Q: Which of the following taxes is paid by the employee and the employer? a.SUTA b.Federal withholding…

A: SUTA: State Unemployment Tax Rate  FUTA: Federal Unemployment Tax Rate  FICA: Federal Insurance…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.