Business, 28.11.2019 05:31 lexijeppesen4533

Lexington corporation collects subscription fees in advance. for financial the lexington corporation initially recognizes the collection of cash from subscription fees as unearned revenue (a liability) and then gradually recognizes these amounts as revenue (part of financial reporting income) as they become earned. however, for income tax reporting, subscription fees are taxed as part of taxable income as soon as the cash is collected. at december 31, 2016 unearned subscription fees of $400,000 were included in lexington's balance sheet. all of these amounts related to cash collected during 2016. during 2017, new subscription fees of $600,000 in cash were collected. unearned revenue from subscriptions in lexington's december 31, 2017 balance sheet amounted to $350,000. assume that the income tax rate was 35%. assuming that the accounting for subscription is the only source of book/tax differences, what amount would be reported as a deferred tax asset or liability on lexington's december 31, 2017 balance sheet?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 05:40

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

Answers: 1

Answer

Business, 22.06.2019 20:30

The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.

Answers: 3

Answer

Business, 22.06.2019 20:40

Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?

Answers: 1

Answer

Business, 22.06.2019 21:50

Which three of the following expenses can student aid recover? -tuition -television -school supplies -parties and socializing -boarding/housing

Answers: 2

Answer

You know the right answer?

Lexington corporation collects subscription fees in advance. for financial the lexington corporation...

Questions