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Question;30. Tyler Company incurred an inventory loss due to a;decline in market prices during its first quarter of operations in 2008. At the;end of the first quarter, management of the company believed the decline in;market prices to be permanent. In the second quarter, the market prices of;Tyler's inventories increased above their acquisition cost. Market prices;remained higher than acquisition cost during the remainder of 2008. How should;Tyler report the facts above on its first and second quarter income statements?;A. Option A;B. Option B;C. Option C;D. Option D;31. Denver Company, a calendar-year corporation, had;the following actual income before income tax expense and estimated effective;annual income tax rates for the first three quarters in 2008;Denver's income tax expense in its interim income statement for the third;quarter should be;A. $126,000.;B. $68,400.;C. $62,400.;D. $54,000.;32. APB Opinion 28 uses which view of interim;reporting?;A. Integral;B. Discrete;C. Segmental;D. Comprehensive;33. Which of the following observations is true of the;discrete view of interim reporting?;A. An interim period is viewed as an installment of an annual period.;B. Recognition and adjustment of certain income or expense items may be;affected by judgments about the expected results of the entire year's;operations.;C. Each interim period is considered as a basic accounting period to be;evaluated as if it were an annual accounting period.;D. One interim period would not bear the entire expense that benefits more;than one interim period.;34. Mason Company paid its annual property taxes of;$240,000 on February 15, 2009. Mason also anticipates that its annual repairs;expense for 2009 will be $1,200,000. This amount is usually incurred and paid;in July and August when operations are shut down so that machinery and;equipment can be repaired. What amount should Mason deduct for property taxes;and repairs in each quarter for 2009?;A. Option A;B. Option B;C. Option C;D. Option D;35. Toledo Imports, a calendar-year corporation, had;the following income before tax expense and estimated effective annual income;tax rates for the first three quarters in 2008;Toledo's income tax expense in its interim income statement for the nine months;ended September 30 and for the third quarter, respectively, are;A. $250,800 and $103,200.;B. $252,000 and $108,000.;C. $252,000 and $103,200.;D. $250,800 and $108,000.

 

Paper#51188 | Written in 18-Jul-2015

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