中级会计学intermediateaccountingchapter18赖红宁课后答案

1、CHAPTER 18ACCOUNTING FOR INCOME TAXESCONTENT ANALYSIS OF EXERCISES AND PROBLEMSNumberContentTime Range(minutes)E18-1Single Temporary Difference. Deferred tax liability. Higher future tax rate. Scheduling. Preparation of income tax journal entry.10-15E18-2Temporary Difference. Depreciation. Preparati

2、on of income tax journal entry. Balance sheet disclosure.10-15E18-3Single Temporary Difference: Multiple Rates. Depreciation. Lower future rates. Scheduling. Preparation of income tax journal entry.10-15E18-4Single Temporary Difference. Deferred tax asset. Beginning balance. Preparation of income ta

3、x journal entry. Balance sheet disclosure.10-15E18-5Valuation Account. Deferred tax asset and valuation allowance. Preparation of income tax journal entries and partial income statement.10-15E18-6Income Taxes. Fill in missing information for various current and deferred income tax items.10-15E18-7Or

4、iginating and Reversing Difference. Preparation of income tax journal entries for six years. Discuss originations and reversals.15-20E18-8Multiple Temporary Differences. One deductible and one taxable difference. Beginning balances. Preparation of income tax journal entry.15-20E18-9Operating Loss. P

5、reparation of income tax journal entry and partial income statement for carryback.10-15E18-10Operating Loss. Preparation of income tax journal entries and partial income statement for carryforward.10-15E18-11Operating Loss. Preparation of income tax journal entries and partial income statements for

6、two years. Carryforward. Discussion of election to forgo carryback.20-3050 / 50文档可自由编辑打印NumberContentTime Range(minutes)E18-12Intraperiod Tax Allocation. Year-end journal entry. Income statement. Statement of retained earnings.15-20E18-13Intraperiod Income Taxes. Calculation. Journal entry. Income s

7、tatement.15-20E18-14Intraperiod Tax Allocation. Income tax liability. Extraordinary loss, loss from discontinued component, gain on disposal, change in depreciation method, prior period error. Income statement disclosure. Statement of retained earnings.15-25E18-15Balance Sheet Disclosure. Presentati

8、on of income tax disclosures.10-15E18-16Change in Tax Rates. Correction of deferred tax liability. Calculation of amount and preparation of journal entry.10-15P18-1Temporary and Permanent Differences. Identification and indication of result for various examples.10-20P18-2Definitions. Matching of ter

9、ms with definitions related to current and deferred tax items. 5-10P18-3Multiple Temporary Differences. Estimated warranty expense, depreciation. Preparation of income tax journal entry and partial income statement. Balance sheet disclosure.15-20P18-4Interperiod Tax Allocation: Change in Rate. Warra

10、nty expense, depreciation, rent receipts, gross profit. Preparation of income tax journal entry and condensed income statement.Balance sheet disclosures.20-30P18-5Interperiod Tax Allocation. Computation of taxable income given various information. Preparation of income tax journal entry. Discussion

11、of permanent differences.25-35P18-6Interperiod Tax Allocation: Change in Rate. Computation of taxable income. Preparation of income tax journal entry and condensed income statement.20-40P18-7Deferred Tax Liability: Depreciation. Depreciation schedule, deferred tax liability schedule. Preparation of

12、income tax journal entry. Explanation of change in deferred tax liability.25-40P18-8Deferred Tax Liability: Depreciation. Depreciation schedule, deferred tax liability schedule. Preparation of income tax journal entries and lower portions of income statements. Presentation of balance sheet disclosur

13、es.25-40P18-9Deferred Taxes: Multiple Rates. One taxable and deductible difference. Higher future tax rate. Scheduling. Preparation of income tax journal entry and lower portion of income statement. Preparation of income tax journal entries.30-40NumberContentTime Range(minutes)P18-10Operating Loss.

14、Preparation of income statement and journal entries for two years. Carryback and carryforward. Valuation allowance.30-45P18-11Operating Loss. Preparation of income statement and journal entries for two years. Carryback and carryforward. No valuation account.30-45P18-12Balance Sheet Reporting and Tax

15、 Rate Changes. Balance sheet disclosures. Correction of deferred tax items. Preparation of income tax journal entry. Computation of income tax expense.25-35P18-13Comprehensive: Intraperiod and Interperiod Tax Allocation. Allocation schedule. Preparation of income tax journal entry, partial income st

16、atement, statement of retained earnings. Balance sheet disclosures.30-40P18-14Comprehensive: Interperiod and Intraperiod Tax Allocation. Preparation of income tax journal entry, partial income statement, statement of retained earnings. Balance sheet disclosures.30-40P18-15Comprehensive: Operating Lo

17、ss and Temporary Difference. Income taxes payable, schedules of deferred tax information, income tax journal entry, partial income statement, note disclosure.30-45ANSWERS TO QUESTIONSQ18-1The objective of financial reporting is to provide useful information to decision makers about companies. This i

18、nformation is intended to enable investors to make buy-hold-sell decisions. The overall objective of the Internal Revenue Code is to obtain funds, in an equitable manner, in order to operate the federal government. The Internal Revenue Code is also sometimes used to stimulate and regulate the econom

19、y.Q18-2The five groups of possible differences between pretax financial income and taxable income (or between income tax expense and income taxes payable) are as follows:1.Permanent differences. Items of revenue or expense that a corporation reports for financial accounting purposes that it never re

20、ports for income tax purposes.2.Temporary differences. Items of revenue or expense that a corporation reports for financial accounting purposes in one period and for income tax purposes in an earlier or later period.Q18-2 (continued)3.Operating loss carrybacks and carryforwards. A corporation may ca

21、rry back or carry forward an operating loss of a given year over a number of periods for income tax purposes, but reports the loss in the given year for financial accounting purposes.4.Tax credits. To stimulate certain investments or to provide tax relief in special circumstances, the Internal Reven

22、ue Code provides specific tax credits that a qualifying corporation may deduct from income taxes owed to determine current income taxes payable.5.Intraperiod tax allocation. A corporation apportions its income tax for financial accounting purposes but not for income tax purposes.Q18-3A permanent dif

23、ference is a difference between a corporation's pretax financial income and taxable income in an accounting period that will never reverse in a later accounting period. Examples include interest received on municipal bonds, life insurance proceeds payable to a corporation upon the death of an in

24、sured employee, life insurance premiums on such insured employees, fines, percentage depletion in excess of cost depletion, and the special dividend deduction.Q18-4A temporary difference is a difference between the tax basis (i.e., book value) of a corporation's asset (or liability) for income t

25、ax purposes and the reported amount (i.e., book value) of the asset (or liability) in its financial statements that will result in taxable or deductible amounts in future years when the corporation recovers the reported amount of the asset (or settles the liability). Examples include gross profit on

26、 certain installment sales, a fixed asset depreciated by MACRS (or ACRS) for income tax purposes and by the straight-line method for financial accounting purposes, rent, interest, and royalties received in advance, product warranty costs, bad debts, and losses on inventories.Q18-5The FASB came to th

27、e following conclusions in FASB Statement No. 109:1.Interperiod income tax allocation of temporary differences is appropriate.2.The comprehensive allocation approach is to be applied.3.The asset/liability method of income tax allocation is to be used.Q18-6The two objectives of accounting for income

28、taxes identified in FASB Statement No. 109 are: (1) that a corporation should recognize the amount of its income tax obligation or refund for the current year, and (2) that a corporation should recognize deferred tax liabilities and assets for the future tax consequences of all events that it h

29、as reported in its financial statements or income tax returns.Q18-7Under generally accepted accounting principles, a corporation uses interperiod income tax allocation to determine its deferred tax assets and liabilities for all temporary differences, based on the currently enacted income tax rates

30、and laws that will be in existence when the temporary differences result in future taxable amounts or deductible amounts. The corporation adjusts its deferred tax assets and liabilities when changes in the income tax rates are enacted.Q18-8The three essential characteristics of a liability establish

31、ed in FASB Statement of Concepts No. 6 are: (1) it must embody a present responsibility of the corporation to another entity that involves settlement by probable future transfer or use of assets at a specified or determinable date, on occurrence of a specified event, or on demand, (2) the responsibi

32、lity obligates the corporation, leaving it little or no discretion to avoid the future sacrifice, and (3) the transaction or other event obligating the corporation has already occurred.The deferred tax consequences of temporary differences (deferred tax liability) of a corporation that will result i

33、n taxable amounts in future years meet these characteristics. The first characteristic is met by a deferred tax liability because (a) the deferred tax consequences stem from the requirements of tax law and hence are a responsibility to the government, (b) settlement will involve a probable future tr

34、ansfer or use of assets when the taxes are paid, and (c) settlement will result from events specified by the tax law. The second characteristic is met because, based on the government rules and regulations, income taxes will be payable when the temporary differences result in taxable amounts in futu

35、re years. The third characteristic is met because the past events that created the temporary differences are the same events that result in the deferred tax liability.Q18-9The three essential characteristics of an asset are: (1) it must embody a probable future benefit that involves a capacity to co

36、ntribute to the corporation's future net cash inflows, (2) the corporation must be able to obtain the benefit and control other entities' access to it, and (3) the transaction or other event resulting in the corporation's right to or control of the benefit must already have occurred.The

37、deferred tax consequences of temporary differences (deferred tax asset) of a corporation that will result in deductible amounts in future years meet these characteristics. The first characteristic is met because the deductible amounts in future years will result in reduced taxable income, therefore

38、contributing to the corporation's future net cash inflows through reduced taxes paid. The second characteristic is met because the corporation will have an exclusive right to the reduced taxes paid. Finally, the third characteristic is met because the past events that created the deductible temp

39、orary differences are the same events that result in the deferred tax asset.Q18-10A corporation establishes a valuation allowance if, based on available evidence, it is more likely than not that a deferred asset will not be realized. The four sources of taxable income that might be used to justify t

40、hat a valuation allowance is not needed include: (1) future reversals of existing taxable temporary differences, (2) future taxable income exclusive of reversing temporary differences, (3) taxable income in prior carryback year(s) if carryback is permitted under the tax law, and (4) prudent and feas

41、ible tax-planning strategies.Q18-11To measure and record a corporation's current and deferred income taxes, the following steps are completed:1.Measure the income tax obligation for the year by applying the applicable tax rate to the current taxable income.2.Identify the temporary differences an

42、d classify as taxable or deductible temporary differences.Q18-11 (continued)3.Measure the year-end deferred tax liability for each taxable temporary difference using the applicable tax rate.4.Measure the year-end deferred tax asset for each deductible temporary difference using the applicable tax ra

43、te.5.Reduce deferred tax assets by a valuation allowance if, based on available evidence, it is more likely than not that some or all of the year-end deferred tax assets will not be realized.6.Record the income tax expense including the deferred tax expense (or benefit), income tax obligation, chang

44、e in deferred tax liabilities and/or deferred tax assets, and change in valuation allowance (if any).Q18-12An operating loss carryback occurs when a corporation carries a reported operating loss back 2 years (in sequential order, starting with the earliest of the 2 years) to offset previously report

45、ed taxable income. In such a case, the corporation files amended income tax returns showing a lower taxable income for those years and receives a refund of income taxes previously paid.The two conceptual questions concerning how a corporation accounts for a carryback are:1.Should the corporation rec

46、ognize the tax benefit of an operating loss carryback as a prior period adjustment or in the current period?2.Should the corporation incurring the operating loss recognize a current receivable for the tax benefit of the carryback?Q18-13An operating loss carryforward occurs when a corporation sequent

47、ially carries a reported operating loss forward 20 years to offset the loss against future taxable income, should there be any. The corporation then pays lower income taxes in the future based on lower future taxable income.The two conceptual questions concerning how a corporation accounts for a car

48、ryforward are:1.Should the corporation recognize the tax effect of an operating loss carryforward in the current period or in the future when it is realized?2.How should the corporation report the tax effect of an operating loss carryforward on its income statements?Q18-14The generally accepted acco

49、unting principles for the financial reporting of operating loss carrybacks and carryforwards are as follows:1.A corporation must recognize the tax benefit of an operating loss carryback in the period of the loss as an asset (current receivable) on its balance sheet and as a reduction of the operatin

50、g loss on its income statement.Q18-14 (continued)2.A corporation must recognize the tax benefit of an operating loss carryforward in the period of the loss as a deferred tax asset. However, it must reduce the deferred tax asset by a valuation allowance, if based on the available evidence, it is more

51、 likely than not that the corporation will not realize some or all of the deferred tax asset.Q18-15Intraperiod income tax allocation is the apportionment of a corporation's total income tax expense for a period to the various components of its income statement (and occasionally the statement of

52、retained earnings, statement of comprehensive income, or statement of changes in stockholders' equity). On its income statement, a corporation reports the income tax expense applicable to pretax income from continuing operations separately. However, the corporation discloses extraordinary items,

53、 cumulative effects of changes in accounting principles, the income or loss from the operations of a discontinued component, the gain or loss from the disposal of a discontinued component, and any other comprehensive income items net of the related income tax effects (with the related tax effect dis

54、closed in parentheses). On the retained earnings statement, it reports prior period adjustments net of the related income tax effects (with the effect disclosed in parentheses).Q18-16A corporation reports its deferred tax liabilities and assets in two classifications: a net current amount and a net

55、noncurrent amount. It bases these classifications on the classifications of the related assets or liabilities for financial reporting. It classifies a deferred tax liability or asset not directly related to an asset or liability (e.g., related to an operating loss carryforward) according to the expe

56、cted reversal date of the temporary difference. A valuation allowance is allocated between current and noncurrent deferred assets on a proportional basis.Q18-17If the income tax laws or rates are changed in a future year so that they differ from those laws or rates previously used to calculate the c

57、orporation's deferred tax liability (or asset), then the corporation adjusts the deferred tax liability (or asset) for the effect of the change. It makes the adjustment to the balance of the deferred tax liability (or asset) as of the beginning of the year in which the change is made, and includes the resulting tax effect in the income tax expense related to its income from continuing operations on the income statement of the current year. The amount of the adjustment is the diff