subject
Business, 06.05.2020 03:25 sharperenae9533

At December 31, DePaul Corporation had a $34 million balance in its deferred tax asset account and a $180 million balance in its deferred tax liability account.
The balances were due to the following cumulative temporary differences:
a. Estimated warranty expense, $25 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty).
b. Depreciation expense, $300 million: straight-line in the income statement; MACRS on the tax return.
c. Income from installment sales of properties, $150 million: income recorded in the year of the sale; taxable when received equally over the next five years.
d. Rent revenue collected in advance, $60 million; taxable in the year collected; recorded as income when the performance obligation is satisfied in the following year.
Required:
1. Assuming DePaul will show a single noncurrent net amount in its December 31 balance sheet, indicate that amount and whether it is a net deferred tax asset or liability. The tax rate is 40%.
2. Determine the deferred tax amounts to be reported in the December 31 balance sheet. The tax rate is 40%. (Enter your answers in millions.)

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:30
According to the research in strategic human resources management,answers: firms that are able to use human resource practices to develop socially complex human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially simplistic human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially complex human and organizational resources gain little advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially complex human and organizational resources are at a competitive disadvantage when compared to firms that do not engage in these practices.
Answers: 3
question
Business, 22.06.2019 06:00
Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.
Answers: 1
question
Business, 22.06.2019 10:00
Which term best fits the sentence? is the process of reasoning, analyzing, and making important decisions. it’s an important skill in making career decisions. a. critical thinking b. weighing pros and cons c. goal setting
Answers: 1
question
Business, 22.06.2019 12:30
howard, fine, & howard is an advertising agency. the firm uses an activity-based costing system to allocate overhead costs to its services. information about the firm's activity cost pool rates follows: stooge company was a client of howard, fine, & howard. recently, 7 administrative assistant hours, 3 new ad campaigns, and 8 meeting hours were incurred for the stooge company account. using the activity-based costing system, how much overhead cost would be allocated to the stooge company account?
Answers: 1
You know the right answer?
At December 31, DePaul Corporation had a $34 million balance in its deferred tax asset account and a...
Questions
question
Mathematics, 21.03.2020 00:25
Questions on the website: 13722362