Question

Orleans Co., a cash basis taxpayer prepares accrual basis financial statements. In its Year 2 balance...

Orleans Co., a cash basis taxpayer prepares accrual basis financial statements. In its Year 2 balance sheet, Orleans' deferred income tax liabilities increased compared to Year 1. Which of the following changes would cause this increase in deferred income tax liabilities?

I. An increase in prepaid insurance.

II. An increase in rent receivable.

III. An increase in warranty obligations.

a. I only

b. I and II

c. II and III

d. III only

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hi

Please let me know in case you face any issue:

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Project Facts: Sunshine Company is a calendar year accrual-basis taxpayer and is in its first year...
Project Facts: Sunshine Company is a calendar year accrual-basis taxpayer and is in its first year of operations. Sunshine Company had the following income, expense, and loss items for the current year: Sales $650,000 Corporate dividend (from 5% owned corporation) 60,000 Municipal bond interest 25,000 Long-term capital gain 0 Short-term capital loss (8,000) Cost of goods sold 320,000 Depreciation 65,000 Nondeductible fines 4,000 Advertising 7,000 Utilities 6,000 Rent 5,000 Furthermore, Sunshine’s liabilities (all recourse) increased from $0 on 1/1 to...
Thompson Corporation is a calendar-year, accrual-basis taxpayer. It provides the following information for this year and...
Thompson Corporation is a calendar-year, accrual-basis taxpayer. It provides the following information for this year and asks you to prepare Schedule M-1. ? Net income per books (after-tax) $239,700 Taxable income 195,000 Federal income tax liability 59,300 Interest income from tax-exempt bonds 5,000 Interest paid on loan incurred to purchase tax-exempt bonds 2,000 Life insurance proceeds received as a result of death of Heron’s president 100,000 Premiums paid on policy on life of Heron’s president 4,500 Excess of capital losses...
Heron Corporation is a calendar-year, accrual-basis taxpayer. It provides the following information for this year and...
Heron Corporation is a calendar-year, accrual-basis taxpayer. It provides the following information for this year and asks you to prepare Schedule M-1. ? Net income per books (after-tax) $239,700 Taxable income 195,000 Federal income tax liability 59,300 Interest income from tax-exempt bonds 5,000 Interest paid on loan incurred to purchase tax-exempt bonds 2,000 Life insurance proceeds received as a result of death of Heron’s president 100,000 Premiums paid on policy on life of Heron’s president 4,500 Excess of capital losses...
Heron Corporation is a calendar-year, accrual-basis taxpayer. It provides the following information for this year and...
Heron Corporation is a calendar-year, accrual-basis taxpayer. It provides the following information for this year and asks you to prepare Schedule M-1. ? Net income per books (after-tax) $239,700 Taxable income 195,000 Federal income tax liability 59,300 Interest income from tax-exempt bonds 5,000 Interest paid on loan incurred to purchase tax-exempt bonds 2,000 Life insurance proceeds received as a result of death of Heron’s president 100,000 Premiums paid on policy on life of Heron’s president 4,500 Excess of capital losses...
Molly's Auto Detailers maintains its records on the cash basis. During 2018, Molly's collected $73,400 from...
Molly's Auto Detailers maintains its records on the cash basis. During 2018, Molly's collected $73,400 from customers and paid $20,900 in expenses. Depreciation expense of $3,300 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $5,000, prepaid expenses decreased $2,300, and accrued liabilities decreased $1,600. Molly's accrual basis net income was:
Raintree Corporation maintains its records on a cash basis. At the end of each year the...
Raintree Corporation maintains its records on a cash basis. At the end of each year the company’s accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: Cash receipts: From customers $ 535,000 Interest on note 3,350 Issue of common stock 50,000 Total cash receipts $ 588,350 Cash disbursements: Purchase of merchandise $ 237,000 Annual insurance payment 7,000 Payment of salaries 197,000 Dividends paid to shareholders 9,000...
Use the accrual basis of accounting for the following chart of accounts: Balance Sheet Accounts Cash...
Use the accrual basis of accounting for the following chart of accounts: Balance Sheet Accounts Cash Petty cash Accounts receivable Prepaids Equipment Accumulated depreciation Accounts payable Accrued liabilities Income Statement Accounts Revenue Insurance expense Hydro expense Depreciation expense For the transactions listed below indicate the account that should be debited and credited: Description Debit Account Credit Account Receive invoice to pre-pay insurance premium for 1 year Prepaids Cash Amortise 1-month of above prepaid insurance Insurance expense Prepaids Issue invoice to...
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's...
Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $43,900 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $1,400. Accounts receivable increased $1,100, supplies increased $4,000, and accrued liabilities increased $1,950. Pat's accrual-basis net income was:
PLEASE USE CHARTS I PROVIDED Fosters Manufacturing Co. warrants its products for one year. The estimated...
PLEASE USE CHARTS I PROVIDED Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 8% of sales. Assume that sales were $560,000 for January. On February 7, a customer received warranty repairs requiring $260 of parts and $70 of labor. CHART OF ACCOUNTS Fosters Manufacturing Co. General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125...
Chris Green, CPA, is auditing Rayne Co.'s 2016 financial statements. For the year ended December 31,...
Chris Green, CPA, is auditing Rayne Co.'s 2016 financial statements. For the year ended December 31, 2016, Rayne is applying GAAP for income taxes. Rayne's controller, Dunn, has prepared a schedule of all differences between financial statement and income tax return income. Dunn believes that as a result of pending legislation, the enacted tax rate at December 31, 2016, will be increased for 2017. Dunn is uncertain which differences to include and which rates to apply in computing deferred taxes....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT