If it is probable that the expected residual value is less than the guaranteed residual value, the difference should be included in the computation of the lease liability.

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Question $32$

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The computation of pension expense includes all the following except$$

a$.$

amortization of prior service cost.

b$.$

service cost component measured using current salary levels.

c$.$

$$expected return on plan assets.

d$.$

$$interest on projected benefit obligation.

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Question $33$

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Lyons Company deducts insurance expense of $$210,000$ for tax purposes in $2021,$ but the expense is not yet recognized for accounting purposes. In $2022,2023,$ and $2024,$ no insurance expense will be deducted for tax purposes, but $$70,000$ of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of $20\%$ and income taxes payable of $$180,000$ at the end of $2021.$ There were no deferred taxes at the beginning of $2021.$

What is the amount of the deferred tax liability at the end of $2021?$

a$.$

$$0$

b$.$

$$42,000$

c$.$

$$36,000$

d$.$

$$15,000$