At December 31, 2017, the following information was provided by the defined benefit pension plan administrator for
Question:
At December 31, 2017, the following information was provided by the defined benefit pension plan administrator for Leonardo Corp.:
Fair value of plan assets................................................ $5,000,000
Defined benefit obligation............................................ 6,200,000
The corporation uses IFRS. What is the net defined benefit liability/asset account that should be shown on Leonardo’s December 31, 2017 statement of financial position?
4. Night Owl Inc. reports a taxable and pre-tax accounting loss of $150,000 for 2017. The corporation's taxable and pre-tax accounting income and tax rates for the last two years were:
2015 $200,000 20%
2016 200,000 25%
The 2017 tax rate is 30%. If Indiana elects to use the carryback provisions, the amount that should be reported as income tax receivable for 2017 is
Options
a.50,000
b.45,000
c. 35,000
d.30,000
5. On January 1, 2017, Lake Corp., a publicly accountable enterprise, purchased 40% of the common shares of Michigan Inc. and accounts for this investment by the equity method. During 2017, Michigan reported earnings of $900,000 and paid dividends of $300,000. Lake assumes that all of Michigan's undistributed earnings will be distributed as dividends in future periods when the enacted tax rate will be 20%. Lake's current income tax rate is 25%. The increase in Lake's deferred tax liability for this temporary difference is
options:
1) $120,000.
2) $100,000.
3) $ 60,000.
4) $ 48,000.
