12.Which of the following is an example of a change in reporting entity?
Multiple Choice
A change in the actuarial life expectancies of employees under a pension plan.
A change in inventory costing methods.
Consolidating a new subsidiary.
A change in the estimated useful life of a depreciable asset.
16.
Illini Inc. operates in two independent tax jurisdictions of
Bears and Packers. Its has the following information of its
deferred tax assets and liabilities:
Bears: |
Deferred tax asset of $5 million |
Valuation allowance of $1 million |
Deferred tax liability of $14 million |
Packers: |
Deferred tax asset of $18 million |
Deferred tax liability of $2 million |
Illini files separate tax returns in Bears and Packers. Illini's
balance sheet should have the following disclosure of deferred tax
assets and liabilities:
Multiple Choice
A deferred tax asset of $6 million.
A deferred tax liability of $9 million and a deferred tax asset of $20 million.
A deferred tax liability of $9 million and a deferred tax asset of $16 million.
A deferred tax liability of $10 million and a deferred tax asset of $16 million.
1) Consolidating a new subsidiary.
2) bears
deffed tax asset =5 million
def tax liaity = 14 million
= 9 million def tax liailbty
packers
def tax asset =18 million
def tax laibtity =2 million
def tax asset = 16 million
A deferred tax liability of $9 million and a deferred tax asset of $16 million
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