For calendar year 2020, Dron-Apart, Corporation, Inc., [DAC] claimed pension fund expenses of $650,000 on its...

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For calendar year 2020, Dron-Apart, Corporation, Inc., [DAC] claimed pension fund expenses of $650,000 on its 2020 income tax return and had contributed a cash amount $1,050,000 to the pension fund. The 2020 balance sheet included $150,000 in accrued warranty expense that will be deducted for tax purposes when paid. Income tax rates had been enacted and known during 2020 and are 30% for 2020 and 2021, 24% for 2022 and 21% for 2023. The pension difference and warranty expense will reverse over the next three years as follows: Year Pension Difference Warranty Expense 2021 $160,000 $ 30,000 2022 210,000 50,000 2023 30,000 70,000 $400,000 $150,000 These were DAC's only reversible (timing) differences. At December 31, 2020, DAC's deferred tax asset/liability should be Select one: a. $67,800 O b. $69,000 Ос. $75,000 O d. $133,800 е. none of the above amounts. DAC's partial income statement for its first year of operations is as follows Income before income taxes $1,400,000 Income tax expense Current $ 386,400 Deferred 33,600 (420,000) Net income $ 980,000 DAC uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $560,000. Except for depreciation, there were no other differences between accounting income and taxable income. What amount was claimed for CCA on the corporation's tax return for the year? Select one: a. $448,000 b. $532,000 С. $560,000 d. $672,000 е. none of the above amounts are correct. For calendar year 2020, Dron-Apart, Corporation, Inc., [DAC] claimed pension fund expenses of $650,000 on its 2020 income tax return and had contributed a cash amount $1,050,000 to the pension fund. The 2020 balance sheet included $150,000 in accrued warranty expense that will be deducted for tax purposes when paid. Income tax rates had been enacted and known during 2020 and are 30% for 2020 and 2021, 24% for 2022 and 21% for 2023. The pension difference and warranty expense will reverse over the next three years as follows: Year Pension Difference Warranty Expense 2021 $160,000 $ 30,000 2022 210,000 50,000 2023 30,000 70,000 $400,000 $150,000 These were DAC's only reversible (timing) differences. At December 31, 2020, DAC's deferred tax asset/liability should be Select one: a. $67,800 O b. $69,000 Ос. $75,000 O d. $133,800 е. none of the above amounts. DAC's partial income statement for its first year of operations is as follows Income before income taxes $1,400,000 Income tax expense Current $ 386,400 Deferred 33,600 (420,000) Net income $ 980,000 DAC uses straight-line depreciation for financial reporting purposes and CCA for tax purposes. The depreciation expense for the year was $560,000. Except for depreciation, there were no other differences between accounting income and taxable income. What amount was claimed for CCA on the corporation's tax return for the year? Select one: a. $448,000 b. $532,000 С. $560,000 d. $672,000 е. none of the above amounts are correct.

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Answer 1 The correct option is E A B A x B Year Pension Difference ... View the full answer