Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem 1: During fiscal year 2012, KhoiLeCo earned $10,000 of interest revenue on an investment in a tax-free municipal bond. Which of the given items would be raised by the municipal bond revenue?

a) Income Tax Expense
b) Income Tax Payable
c) Effective Tax Rate
d) Interest Revenue
e) Statutory Tax Rate

problem 2: At the end of December 2013, Copeland Co. had $10,000 of Deferred Tax Assets related to its Allowance for Doubtful Accounts. In response to low public approval ratings (and after a particularly boisterous holiday party), the US Congress passed a law to decrease the Federal Statutory Tax Rate from 35% to 20% on December 31, 2013. As a US company, Copeland had to instantly  adjust the balance of its DTAs based on the new law.

Which of the given items would be reduced by the entry to adjust the balance in Deferred Tax Assets?

a) Total Liabilities
b) Net Income
c) Cash from Investing Activities
d) Deferred Tax Assets
e) Accumulated Other Comprehensive Income

problem 3: Due to years of poor management, Carley Inc. had $350 million in Deferred Tax Assets due to NOL carryforwards in its various subsidiaries around the world. At the end of 2012, Carley had a Valuation Allowance of $280 million related to these DTAs. In January 2013, Carley hired Darren Kerr to take over the Liechtenstein subsidiary, which quickly returned to profitability. At the end of 2013, Carley decided that it was “more likely than not” that the Liechtenstein subsidiary would be profitable enough to use the NOLs in Liechtenstein by 2014 and made the appropriate adjustment to the Valuation Allowance.

Which of the given items would be raised by the adjustment to the Valuation Allowance?

a) Valuation Allowance
b) Income Tax Expense
c) Total Shareholders’ Equity
d) Total Assets
e) Total Liabilities

problem 4: On November 12, 2013, Omodiaogbe Ltd. repurchased 10,000 shares of its own stock at a price of $20 per share. Omodiaogbe had originally issued the stock in 2010 at a price of $15 per share.

Which of the given items would be reduced by the stock repurchase transaction?

a) Total Shareholders’ Equity
b) Loss on Repurchase
c) Total Liabilities
d) Cash from Investing Activities
e) Net Income

problem 5: On September 26, 2013, Ziadeh S.A. announced a 3-for-1 common stock split.

Which of the given items would be raised by the stock split?

a) Additional Paid in Capital
b) Shares Outstanding
c) Cash from Financing Activities
d) Total Assets
e) Total Shareholders’ Equity

problem 6:

On January 1, 2011, Aoki Ltd. granted its CEO, Eriko Aoki, 1,000 stock options with an exercise price of $30 per share as compensation. The options vest over 4-years and expire after 10 years. The stock price on the grant date was $30 and the fair value of the option grant was $10 per share. On December 31, 2012, Aoki Ltd. recorded a journal entry related to this option grant.

Which of the given items would be redced by the December 31, 2012 journal entry?

a) Net Income
b) Cash from Financing Activities
c) Cash from Operating Activities
d) Accumulated Other Comprehensive Income
e) Compensation Expense

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M94650

Have any Question? 


Related Questions in Financial Accounting

In fiscal 2010 dell inc acquired perot systems for 3878

In Fiscal 2010, Dell Inc. acquired Perot Systems for $3,878 million in cash. Perot's net assets acquired hand the following fair values at the acquisition date. In Million Fair Value cash and cash equivalents $266 Accoun ...

1 write the journal entries for the following transactionsa

1) Write the journal entries for the following transactions: a) The company acquires $200 of inventory on accounts (does not pay cash) b) The company sells $125 of the $200 inventory purchased in transaction (a) above. T ...

The product life cycle plc is a theory that has strong

The Product Life Cycle (PLC), is a theory that has strong roots in marketing and is a standard for determining the historical development of products and industries from introduction to a presumably eventual decline. Eac ...

Assignmentglorious garden lawn service1 prepare the entries

Assignment Glorious Garden Lawn Service 1. Prepare the entries using the list of transactions. Put them in the general journal. 2. Post the journal entries from the general journal to the general ledger. 3. Prepare a tri ...

Burger king investigation of the following1decreasing

Burger King investigation of the following: 1.Decreasing Revenue 2.Change in Revenue Mix 3.Significant Change in "food paper & product costs" line item 4.Other significant change in expense Tim Horton's 1-Accounts Receiv ...

There are four main methods for documenting specific

There are four main methods for documenting specific business processes, systems, and so on. If your company asked you to document the workflow in your department, where would you start and why? How would that change if ...

Yoursquore leading a project to migrate customer data

You’re leading a project to migrate customer data (biographical, billing, and orders) from the legacy system to an off-the-shelf product sold by MicroTech. The project was going well, but a key programmer recently inform ...

Assignmentuse the following information for questions 1

Assignment Use the following information for Questions 1 through 5: Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS: Year P ...

Outdoor furniture company has inventory balances at the end

Outdoor Furniture Company has inventory balances at the end of August as follows: Materials inventory $21,360 Work-in-Process inventory 15,112 Finished goods inventory 17,120 Job order cost cards for jobs in process at t ...

Assignmentyou have just been hired as a new management

Assignment You have just been hired as a new management trainee by XYZ Co, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little i ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro