Question: Darrell Corporation reports under IFRS and at December 31, 2012, the company had a net future tax liability of $375,000. An explanation of the items

Darrell reports under IFRS and at December 31, 2012, the company had a net future tax liability of $375,000. An explanation of the items that make up this balance follows:

Instructions
(a) Indicate how future taxes should be presented on Darrell Corporation€™s December 31, 2012 balance sheet.
(b) How would your response to (a) change if Darrell Corporation followed the PE GAAP future income taxes method?

Resulting Balances in Future Tax Account Temporary Differences 1. Excess of accumulated tax depreciation over book depreciation 2. Accrual, for book purposes, of estimated loss contingency from $230,000 pending lawsuit that is expected to be settled in 2012. The loss will be deducted on the tax return when it is paid. (80,000) 3. Accrual method (account receivable) used for book purposes and instalment method used for tax purposes for an isolated instalment sale of an investment, due in 2013. 225,000 $375,000

Step by Step Solution

★★★★★

3.35 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Related Resulting Balance PE GAAP Temporary Future Tax Sheet Classi Difference Asset Liabili... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

516-B-A-I-T (1146).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

1. Why would 3P Turbo consider investing in Brazil? What are the advantages and disadvantages to locating its operations in Brazil? 2. What discount rate would you use to discount the cash flows from...

Darrell Corporation reports under IFRS and at December 31, 2014, the company had a net deferred tax liability of $375,000. An explanation of the items that make up this balance follows: Resulting...

At December 31, 2012, Cascade Company had a net deferred tax liability of $450,000. An explanation of the items that compose this balance is as follows. In analyzing the temporary differences, you...

At December 31, 2008, Belmont Company had a net deferred tax liability of $375,000. An explanation of the items that compose this balance is as follows. In analyzing the temporary differences, you...

Sarasota Corporation reports under IFRS and at December 31, 2020, the company had a net deferred tax liability of $458,000. An explanation of the items that make up this balance follows: QUESTION:...

Please answer b). Current Attempt in Progress Monty Corporation reports under IFRS and at December 31, 2020, the company had a net deferred tax liability of $380,500. An explanation of the items that...

Blue Spruce Corporation reports under IFRS and at December 31, 2020, the company had a net deferred tax liability of $453,000. An explanation of the items that make up this balance follows: Resulting...

Novak Corporation reports under IFRS and at December 31, 2020, the company had a net deferred tax liability of $479,500. An explanation of the items that make up this balance follows: Resulting...

Grouper Corporation reports under IFRS and at December 31, 2020, the company had a net deferred tax liability of $411,500. An explanation of the items that make up this balance follows: Resulting...

Blue Spruce Corporation reports under IFRS and at December 31, 2020, the company had a net deferred tax liability of $422,000. An explanation of the items that make up this balance follows: Resulting...

Darrell Corporation reports under IFRS. At December 31, 2023, the company had a net deferred tax liability of $402,000. An explanation of the items that make up this balance follows: Instructions a....

During the period from July 1 to December 31, Upper Company received dividends of $4, $2, and $3 per share, respectively, from the common shares of Jack, Queen, and King companies acquired in Problem...

Suppose you work for a furniture manufacturer, one of whose products is the chair depicted in Figure 14-5. Finished goods inventory is held in a central warehouse in anticipation of customer orders....

Zappos is known for offering free shipping and free returns, even at the company s expense, to make customers feel confident about purchasing online. What marketing philosophy does this reflect?...

Georgio owns a 30 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: $ 90,250 $ 19,300 $ (45,750) $...

The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $15,000, and that Gary and Prudence will share the remaining profits or losses in a...

QUESTION 14 Reference plane d, If, in the given figure, out of balance is placed at A is jelao (0.36+j0.018) N kg-m and that in plane E is jeo? (0.42+j0.023) N kg-m and dy-5. d2 d3=61, da=52.d5=18...

This year, Darrel's distributive share from Alcove Partnership includes $10,000 of interest income, $1,800 of dividend income, and $66,000 ordinary business income. a. Assume that Darrel materially...

Juan Diego began the year with a tax basis in his partnership interest of $40,000. During the year, he was allocated $33,000 of partnership ordinary business income, $110,000 of $1231 losses, and...

A crew of 5 laborers (3 masons and 2 helpers), must build a wall, 620 LF long and 5 ft high, using 8 concrete blocks. The crew can do 520 blocks /day. The contract stipulates that the wall must...

Distinguish among: cash dividends, property dividends, liquidating dividends, and stock dividends.

At the end of each year, a self-employed person deposits $1,500 in a retirement account that earns 7 percent annually.\ a. How much will be in the account when the individual retires at the age of 65...

I want to solve this paper Date 12/31/2017 12/31/2018 Undiscounted Expected Cash Flows $150,000 $130,000 $90,000 Credit-Adjusted Risk-Free Rate 9% 8% 12/31/2019 6% On December 31, 2019, the entity...

Returns Year X Y 1 1 6 % 2 2 % 2 3 0 3 1 3 1 1 1 2 4 2 3 2 8 5 1 0 2 2 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y...