Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Suppose you have been hired as the consultant to counsel on how to show the tax differences between books and tax returns on balance sheet of ABC Company. There are some problemable items that the present controller Mary Sims is confused as to correct presentation. Timing differences are:

i) $1,5000,000 as the result of depreciation timing difference (books S-L versus MACRS tax return).

ii) There also was the bad debt reserve increase from previous year of $250,000.

ABC Company is the manufacturing company who accumulated $300,000 in warranty liability at year-end and couldn’t deduct it on tax return for this year but warranty will be paid out in following year. A lawsuit in amount of= $450,000 was accumulated on books at year-end awaiting final legal court judgment. Previous court cases have ruled that this $500,000 can be paid evenly over 3 years. You have to prepare the memo to Mary Sims advising her how to categorize these temporary tax differences on her books at year-end. In your memo provide FASB sources for her that authenticates your balance sheet presentation.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914256

Have any Question? 


Related Questions in Basic Finance

1 what is the equation of exchange is the equation of

1. What is the equation of exchange? Is the equation of exchange a theory? Briefly explain. 2. What is the quantity theory of money? What does the quantity theory indicate is the cause of inflation? 3. What is purchasing ...

An authorised deposit institution adi issued a 6 january

An Authorised Deposit Institution (ADI) issued a 6% January 2016 bond with a face value of $15 000 on 31 January 2012 at a yield of 7%. Assume that coupon payments are made every six months. The bond was sold on 31 Janua ...

Contrast lookback options and barrier options and explain

Contrast lookback options and barrier options and explain the difference between in- and out-options ? Explain how weather derivatives could be used by an electric utility to manage the risk associated with power consump ...

1 distinguish between concurrent and predictive validity do

1. Distinguish between concurrent and predictive validity. Do these terms refer to types of construct validity or criterion-related validity? 2. How can we tell whether a particular measure is biased against a particular ...

Choose an global industry and consider the following topics

Choose an global industry and consider the following topics: diversification, investment, management, exchange rates or currency forecasts. Which of these would be most significant to your selected industry and how would ...

Rosa inc has arranged a one-year 2 million credit line with

Rosa Inc. has arranged a one-year, $2 million credit line with its lead bank. The bank set the interest rate at the prime rate plus a spread of 1.50 percent. The prime rate is expected to remain stable at 5.25 percent du ...

Lst three types of compensation for a companys management

List three types of compensation for a company's management ? How are options intended to align the interests of managers and owners of a corporation? What incentive does a manager have to understate earnings? What is me ...

The us express reported that the color distribution for

The US Express reported that the color distribution for plain M&M's was: 40%brown, 20% yellow, 20% orange, 10% green, and 10% tan. Each piece of candy in a random sample of 100 plain M&M's was classified according to col ...

The ceo of a large corporation holds a position of 25

The CEO of a large corporation holds a position of 25 million shares in her company's stock, which is currently priced at $20 and pays no dividends. She is concerned that, because of her large shareholdings and the fact ...

1 if the exchange rate between the yen and the dollar

1. If the exchange rate between the yen and the dollar changes from ¥80 = $1 to ¥90 = $1, is this good news for Sony? Is it good news for U.S. consumers? Is it good news for U.S. firms that export to Japan? Is it good ne ...

  • 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