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Concept explainers
Identify future taxable amounts and future deductible amounts
• LO16–1, LO16–2
(This is a variation of E 16–6, modified to focus on the
Temporary Difference
_______ 1. Accrual of loss contingency; tax-deductible when paid
_______ 2. Newspaper subscriptions; taxable when received, recognized for financial reporting when the performance obligation is satisfied
_______ 3. Prepaid rent; tax-deductible when paid
_______ 4. Accrued bond interest expense; tax-deductible when paid
_______ 5. Prepaid insurance; tax-deductible when paid
_______ 6. Unrealized loss from recording investments at fair value; tax-deductible when investments are sold
_______ 7. Warranty expense; estimated for financial reporting when products are sold; deducted for tax purposes when paid
_______ 8. Advance rent receipts on an operating lease as the lessor; taxable when received
_______ 9. Straight-line
_______ 10. Accrued expense for employee postretirement benefits; tax-deductible when subsequent payments are made
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Chapter 16 Solutions
INTERMEDIATE ACCOUNTING
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- general accountingarrow_forwardE3-17 (Algo) Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method) [LO 3-2] Vista Vacuum Company has the following production Information for the month of March. All materials are added at the beginning of the manufacturing process. Units . • Beginning Inventory of 3,500 units that are 100 percent complete for materials and 28 percent complete for conversion. 14,600 units started during the period. Ending Inventory of 4,200 units that are 14 percent complete for conversion. Manufacturing Costs Beginning Inventory was $20,500 ($10,100 materials and $10,400 conversion costs). Costs added during the month were $28,400 for materials and $51,500 for conversion ($26.700 labor and $24,800 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the…arrow_forwardNonearrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
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