Financial Accounting (12th Edition) (What's New in Accounting)
Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter E, Problem E.13S

(Learning Objective 5: Calculate and record interest on a bond investment issued at a discount) Using the data from E-S-12, calculate the amount of discount amortization (using the straight-line amortization method) on July 1, 2018, and record the related journal entry. What is the total interest revenue for the first six months of 2018? (Hint: include both the interest received in E-S-12 and the discount amortization from this exercise.)

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In 2013, its first year of operations, Anderson Appliance Corporation had Income (per books before income taxes) of $1,100,000. The following items are included in Anderson's pre-tax income: interest income from municipal bonds of $50,000; accrued warranty costs, estimated to be paid in 2014, of $65,000; and installment sales revenue of $60,000, which will be collected in 2014. In addition, Anderson has on its books prepaid rent expense of $30,000, which will be used in 2014. Assuming the enacted tax rate in effect for 2013 and 2014 is 40%, what amount should Anderson record as the net current deferred tax asset or liability for the year ended December 31, 2013? a) $25,000 deferred tax asset b) $25,000 deferred tax liability c) $10,000 deferred tax asset d) $10,000 deferred tax liability
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Financial Accounting (12th Edition) (What's New in Accounting)

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