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uppose that, in 2019, Indiana incurred additional costs of $66 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated):

uppose that, in 2019, Indiana incurred additional costs of $66 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated):

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Indiana Co. began a construction project in 2018 with a contract price of $160 million to be received when the project is completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional $82 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2019, Indiana incurred additional costs of $66 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated): Multiple Choice Recognized $13.2 million gross profit on the project in 2019. Recognized $10.2 million loss on the project in 2019. Recognized $3.00 million loss on the project in 2019. Recognized $10.2 million gross profit on the project in 2019.
Transcribed Image Text:Indiana Co. began a construction project in 2018 with a contract price of $160 million to be received when the project is completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional $82 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. Suppose that, in 2019, Indiana incurred additional costs of $66 million and estimated an additional $54 million in costs to complete the project. Indiana (Do not round your percentage calculated): Multiple Choice Recognized $13.2 million gross profit on the project in 2019. Recognized $10.2 million loss on the project in 2019. Recognized $3.00 million loss on the project in 2019. Recognized $10.2 million gross profit on the project in 2019.
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income Permanent difference $380, eee (14,5ee) 285,500 (20, 400) Temporary difference-depreciation Taxable income $265, 100 Tringali's tax rate is 34%. Assume that no estimated taxes have been paid. What should Tringali report as its deferred income tax liability as of the end of its first year of operations? Multiple Choice $20.400 $11,86. $6,936 $34,90. O O O
Transcribed Image Text:For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income Permanent difference $380, eee (14,5ee) 285,500 (20, 400) Temporary difference-depreciation Taxable income $265, 100 Tringali's tax rate is 34%. Assume that no estimated taxes have been paid. What should Tringali report as its deferred income tax liability as of the end of its first year of operations? Multiple Choice $20.400 $11,86. $6,936 $34,90. O O O
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