A-

Vanguard Company has a Deferred Tax Asset (DTA), related to Net Operating Loss Carryovers of 257,758........Their tax rate is 40% in the currently year, and the enacted tax rate for all future years....The company now thinks that they will only be able to make a total amount of taxable income in all future years combined, of $500,000....How much of a Valuation Allowance should they create for their DTA?

B-

Mars Company started operations in 2024......In that year they deducted 65,817 depreciation for tax purposes, but only 22,606 depreciation for book purposes......The tax rate for 2024, and the enacted tax rate for all years in the future is 45%...What is the amount of Deferred Tax Liability that Mars should report on their Dec 31 2024 balance sheet?

C-

A pension worksheet shows the following amounts in the pension expense column....Service Cost 21 DR......Interest Cost 18 DR.....Expected return on Plan assets 24 CR......Amortization of Prior Service Costs 9 DR.....Amortization of net gain 7 CR.....In the journal entry to record the pension expense, what amount will be credited to PBO?

Answer rating: 100% (QA)

The amount of the valuation allowance should be large enough to bring the DTA to zero In order to ca... View the full answer