subject
Business, 06.05.2020 03:17 machapman6594

Times-Roman Publishing Company reports the following amounts in its first three years of operation:

($ in 000s) 2016 2017 2018
Pretax accounting income $250 $240 $230
Taxable income $290 $220 $260

The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when earned. The income tax rate is 40% each year. Times-Roman anticipates profitable operations in the future.

Required

1. What is the balance sheet account for which a temporary difference is created by this situation?

a. Earned subscription
b. Unearned subscription

2. For each year, indicate the cumulative amount of the temporary difference at year-end
3. Determine the balance in the related deferred tax account at the end of each year, Is it a deferred tax asset or a deferred tax liability?
4. How should the deferred tax amount be classified and reported in the balance sheet?

a. Noncurrent
b. Current

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:30
A) plot the m1 and m2 money stock in the us from 1990-2015. (hint: you may use the data tools provided by fred.) (b) plot the nominal interest rate from 1960 to 2014. (hint: you can either use the daily interest rates for selected u.s. treasury, private money market and capital market instruments from or the effective federal funds rate fromfred.) (c) the consumer price index (cpi) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. intuitively, the cpi represents the cost of living or the average price level. plot the cpi from 1960 to 2013.(d) the inflation rate is the yearly percentage change in the average price level. in practice, we usually use the percentage change in the cpi to compute the inflation rate. plot the inflation rate from 1960 to 2013.(e) explain the difference between the ex-ante and ex-post real interest rate. use the fisher equation to compute the ex-post real interest rate. plot the nominal interest rate and the ex-post real interest rate from 1960 to 2013 in the same graph.
Answers: 3
question
Business, 22.06.2019 09:30
Which are the best examples of costs that should be considered when creating a project budget?
Answers: 2
question
Business, 22.06.2019 20:00
Harry is 25 years old with a 1.55 rating factor for his auto insurance. if his annual base premium is $1,012, what is his total premium? $1,568.60 $2,530 $1,582.55 $1,842.25
Answers: 1
question
Business, 22.06.2019 20:30
Identify the level of the literature hierarchy for u.s. gaap to which each item belongs
Answers: 1
You know the right answer?
Times-Roman Publishing Company reports the following amounts in its first three years of operation:<...
Questions
question
Physics, 30.10.2020 21:10
question
History, 30.10.2020 21:10
question
Mathematics, 30.10.2020 21:10
question
Mathematics, 30.10.2020 21:10