The following differences between financial and taxable income were reported by Dider Corporation for the current year

2. The following differences between financial and taxable income were reported by Dider Corporation for the current year.

(a) Excess of tax depreciation over book depreciation $60,000
(b) Interest revenue on municipal bonds $9,000
(c) Excess of estimated warranty expense over actual expenditures $54,000
(d) Unearned rent received $12,000
(e) Amortization of goodwill $30,000
(f) Excess of income reported under percentage-of-completion accounting for financial reporting over competed-contract accounting used for tax reporting $45,000
(g) Interest on indebtedness incurred to purchase tax-exempt securities $3,000
(h) Unrealized losses on marketable securities recognized for financial reporting $18,000

Assume that Dider corp. had pretax accounting income [before considering items (a) through (h)] of $900,000 for the current year. Compute the taxable income for the current year. Write your figures in the form attached and show all your work

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Rantzow-Lear Company buys and sells securities expecting to earn profits on short-term differences in price

E 12-4 Various transactions relating to trading securities

Rantzow-Lear Company buys and sells securities expecting to earn profits on short-term differences in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2011 and the first week of 2012.

Required:
1. Prepare the appropriate journal entry for each transaction.
2. Indicate any amounts that Rantzow-Lear Company would report in its 2011 balance sheet and income statement as a result of this investment.


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Button Company has two temporary differences between its income tax expense and income taxes payable

E19-8 (Two Temporary Differences, One Rate, 3 years) Button Company has two temporary differences between its income tax expense and income taxes payable. The information is shown on page 1004.

2007 2008 2009
Personal Financial income $840,000 $910,000 $945,000
Excess depreciation expense on tax return (30,000) (40,000) (10,000)
Excess warranty expense in financial income 20,000 10,000 8,000
Taxable Income 830,000 880,000 943,000

Income tax rate for all years = 40%

Prepare the income tax expense sectin of the income statement for 2009, beginning with the line "Pretax financial income."


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List and briefly describe four of the five differences between managerial accounting and financial accounting

List and briefly describe four of the five differences between managerial accounting and financial accounting.

Click here for the solution: List and briefly describe four of the five differences between managerial accounting and financial accounting.

Briefly describe at least two similarities and two differences between U.S. GAAP and iGAAP with respect to income tax accounting

Briefly describe at least two similarities and two differences between U.S. GAAP and iGAAP with respect to income tax accounting.

Click here for the solution: Briefly describe at least two similarities and two differences between U.S. GAAP and iGAAP with respect to income tax accounting

Briefly describe some of the similarities and differences between U.S. GAAP and iGAAP related to the accounting for pensions

1. Briefly describe some of the similarities and differences between U.S. GAAP and iGAAP related to the accounting for pensions.

2. At the beginning of the year of adoption of Statement of Financial Accounting Standards No. 106, a transition amount is computed as the excess of the
expected postretirement benefit obligation over the fair value of plan assets or vice versa.
accumulated postretirement benefit obligation over the fair value of plan assets or vice versa.
expected postretirement benefit obligation over the fair value of plan assets, but not vice versa.
accumulated postretirement benefit obligation over the fair value of plan assets, but not vice versa.

Click here for the solution: Briefly describe some of the similarities and differences between U.S. GAAP and iGAAP related to the accounting for pensions