CHAPTERS $16,17,18$

D$.$ D$.$ deferred tax liability of $$200,000$

$13.$ When a company adjusts the balance of a deferred tax account to reflect changes in the atx rate, prior period financial statements will need to be adjusted to reflect this.

A$.$ True

B$.$ False

$14.$ TLR Productions reported income before taxes of $$195,000$ for the years $2020,2021$ and $2022.$ In $2023$ they experienced a loss of $$500,000.$ TLR has a tax rate of $25\%$ in $2020$ and $2021,$ and a tax rate of $35\%$ in $2022$ and $2023.$ Assuming the company uses the carryback for the net operating loss and that the jurisdiction allows losses to be carried back two years, what amount should be reported as Income Tax Refund in $2023?$

A$.$ $$175,000$

B$.$ $$117,000$

C$.$ $$48,750$

D$.$ $$155,500$

$15.$ The initial direct costs cannot be deferred and the lessor must expense initial direct costs at the lease commencement.

A$.$ True

B$.$ False

$16.$ The date is when the lease agreement is signed. The the lessee is allowed to begin using the leased asset.

A$.$ lease inception; lease commencement

B$.$ lease consideration; lese commencement

C$.$ Lease inception; lease finalization

D$.$ Both A and $B$ are correct

$17.$ Which of the following statements is true?

A$.$ the right$-$of$-$use asset is increased by prepaid lease payments, but reduced by lease incentives and the lessee's initial direct costs

B$.$ the right$-$of$-$use asset is increased by prepaid lease payments and the lessee's initial direct costs but reduced by lease incentives.

C$.$ the righto$-$of$-$use asset is reduced by the lessee's initial direct costs, but increased by lease incentives and prepaid lease payments