Business, 28.07.2021 01:00 briiiii7410
Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): Revenues Expenses Pretax accounting income (income statement) Taxable income tax return) Tax rate: 25% 2021 $ 950 806 $ 144 $ 94 2022 $1,042 862 $ 180 $ 244
a. Expenses each year include $68 million from a two-year casualty insurance policy purchased in 2021 for $94 million. The cost is tax deductible in 2021.
b. Expenses include $2 million insurance premiums each year for life insurance on key executives.
c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $69 million and $85 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $63 million ($48 million collected in 2020 but not recognized as revenue until 2021) and $69 million, respectively. Hint View this as two temporary differences-one reversing in 2021, one originating in 2021.
d. 2021 expenses included a $52 million unrealized loss from reducing investments (classified as trading securities) to fair value. The investments were sold and the loss realized in 2022.
e. During 2020, accounting income included an estimated loss of $42 million from having accrued a loss contingency. The loss was paid in 2021, at which time it is tax deductible.
f. At January 1, 2021, Arndt had a deferred tax asset of $4 million and no deferred tax liability.
5. Compute the deferred tax amounts that should be reported on the 2022 balance sheet.
Answers: 2
Business, 21.06.2019 17:20
Luis and rosa, citizens of costa rica, moved to the united states in year 1 where they both lived and worked. in year 3, they provided the total support for their four young children (all under the age of 10). two children lived with luis and rosa in the u.s., one child lived with his aunt in mexico, and one child lived with her grandmother in costa rica. none of the children earned any income. all of the children were citizens of costa rica. the child in mexico was a resident of mexico, and the child in costa rica was a resident of costa rica. how many total exemptions (personal exemptions plus exemptions for dependents) may luis and rosa claim on their year 3 joint income tax return? a. 6 b. 5 c. 4 d. 2
Answers: 3
Business, 21.06.2019 23:00
Which of the following statements about the relationship between economic costs and accounting costs is true? multiple choice accounting costs are equal to or greater than economic costs. accounting costs must always equal economic costs. accounting costs are always greater than economic costs. accounting costs are always less than or equal to economic costs.
Answers: 2
Business, 22.06.2019 02:30
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $
Answers: 1
Business, 22.06.2019 10:30
How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.
Answers: 1
Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): Revenues Expenses Pretax accou...
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
English, 08.12.2020 17:20
Business, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20
Chemistry, 08.12.2020 17:20
Mathematics, 08.12.2020 17:20