Finance And Accounting

Question: What would the investor company do under the equity method if the investee company declares dividends?
A
Increase the investment account

B
Decrease the investment account

C
Increase the revenue account

D
Decrease the revenue account

Note: Answer not sure
1. Report
Question: XYZ Company reports income tax expense of $224,000 on its Income Statement for the year ending December 31 Year 4. Included in Year 4's income is interest revenue of $40,000 from some tax-exempt municipal bonds that the company owns. In computing its income tax expense of $224,000, the company also had a temporary difference of $80,000, which will result in a future tax deduction. It is assumed that a tax rate of 30 percent will apply to the future tax deduction. The tax rate for Year 4 (the company's first year of operations) is 40 percent. Given the above information, what is XYZ's effective tax rate for Year 4?
A
$224,000/$580,000 = .386

B
$224,000/$660,000 = .339

C
$224,000/$620,000 = .361

D
None of these

Note: Answer not sure
1. Report
Question: In computing its income tax expense for the current year (its first year of operations), XYZ Company has an $18,000 temporary difference (accelerated depreciation for tax purposes). It is assumed that a tax rate of 35 percent will apply to the future period of taxable income. The company's income for tax purposes is $282,000 and the current tax rate is 40 percent. How would XYZ Company report the tax effect of the temporary difference on its Balance Sheet for the current year?
A
As a deferred tax asset of $7,200

B
As a deferred tax liability of $7,200

C
As a deferred tax asset of $6,300

D
As a deferred tax liability of $6,300

Note: Answer not sure
1. Report
Question: XYZ Company reports income tax expense of $224,000 on its Income Statement for the year ending December 31 Year 4. Included in Year 4's income is interest revenue of $40,000 from some tax-exempt municipal bonds that the company owns. In computing its income tax expense of $224,000, the company also had a temporary difference of $80,000, which will result in a future tax deduction. It is assumed that a tax rate of 30 percent will apply to the future tax deduction. The tax rate for Year 4 (the company's first year of operations) is 40 percent. Given the above information, what is XYZ Company's taxable income for Year 4?
A
$560,000

B
$620,000

C
$520,000

D
None of these

Note: Answer not sure
1. Report
Question: On its December 31 Year 2 Balance Sheet, XYZ Company reports a current liability for income tax payable of $180,000. During the year, the company's Deferred Tax Liability account increased by $54,000 based on a tax rate of 40 percent applying to the future period of taxable income. The tax rate for Year 2 was 30 percent. What is XYZ's book income for Year 2?
A
$600,000

B
$735,000

C
$780,000

D
$585,000

Note: Answer not sure
1. Report
Question: When a company acquires a derivative and attempts to reduce risks involving fluctuations in a market value, the FASB ________________.
A
classifies the transaction as a fair value hedge

B
classifies the transaction as a cash flow hedge

C
requires the derivative to be recorded and continue to be reported at the acquiring cost

D
All of these

Note: Answer not sure
1. Report
Question: On January 1 of Year 1, the XYZ Company Clinic leases some diagnostic equipment under a capital lease for six years. Using 10 percent interest, the present value of the lease liability is $244,000 on January 1 of Year 1. After the first lease payment is made on December 31 of Year 1, the clinic reports a lease liability of $212,400. Given the above information, what is the amount of each lease payment?
A
$46,936

B
$31,600

C
$56,000

D
$40,664

Note: Answer not sure
1. Report
Question: Which of the following methods is used to recognize goodwill after a business acquisition is accounted for?
A
Pooling of interests method

B
Purchase method

C
Either pooling of interests or purchase method

D
Neither pooling of interest or purchase method

Note: Answer not sure
1. Report
Question: XYZ Company purchases securities at a cost of $220,000 on April 16. At the time of purchase, XYZ pays a 5 percent commission ($11,000), a 6 percent tax ($13,200), and a transfer fee ($3,000). What amount should the company record as the acquisition cost of the securities?
A
$220,000

B
$247,200

C
$244,200

D
$234,000

Note: Answer not sure
1. Report
Question: XYZ Company has three securities in its portfolio available for sale, as follows: Security 1: Beatty, Cost: $78,000, 12/31/06 Market Value: $93,600, 12/31/07 Market Value:$100,100 Security 2: Cole, CoSt: $117,000, 12/31/06 Market Value: $120,900, 12/31/07 Market Value:$0 Security 3: Sells, Cost: $58,500, 12/31/06 Market Value: $53,500, 12/31/07 Market Value:$50,700 The Cole stock was sold in Year 2 for $127,400. Given the above information, which of the following statements is true?
A
On its 12/31 Year 1 Balance Sheet, XYZ Company would report the Sells stock at its cost of $58,500.

B
On its Income Statement for the year ending 12/31 Year 1, XYZ Company would report an unrealized holding loss of $5,200.

C
On its Income Statement for the year ending 12/31 Year 2, XYZ Company would report an unrealized holding loss of $2,600.

D
None of these statements is true.

Note: Answer not sure
1. Report

First Prev 150 151 152 153 154 Next Last

Question: What would the investor company do under the equity method if the investee company declares dividends?

Question: When a company acquires a derivative and attempts to reduce risks involving fluctuations in a market value, the FASB ________________.

Question: Which of the following methods is used to recognize goodwill after a business acquisition is accounted for?

Question: XYZ Company purchases securities at a cost of $220,000 on April 16. At the time of purchase, XYZ pays a 5 percent commission ($11,000), a 6 percent tax ($13,200), and a transfer fee ($3,000). What amount should the company record as the acquisition cost of the securities?