Intermediate accounting

 

The following represents information about the first several years of operations.
– Year 2, financial income before tax: $100,000

– Warranty – Year one the company recorded warranty expense of $10,000. It will be paid in years two and three. Year two warranty expense was $8,000 to be paid in years three and four.

– In year two, the company accrued $15,000 for fines for an environmental spill which will be paid in year three.

– In year two, the company recognized $6,000 of municipal interest income.

– Deferred revenue in year one was $30,000 to be recognized in year two for book purposes.

– Company purchased a truck in year one for $33,000. It is depreciated over three years, 0 residual value, straight-line for book purposes. For tax purposes the company is allowed to expense the entire amount in the first year.

– DTA at the beginning of year two is $12,000.

– DTL at the beginning of year two is $6,600.

– The tax rate in years one and two was 30%. At the end of year two, Congress approved a tax rate increase to 40% for future years.

You were hired at the beginning of YEAR TWO. The person who did the work for year one, a former UP grad, was promoted. You are confident it was done correctly in the prior year.

a.Show how the beginning balance in the deferred tax liability account at year two was computed. (4 points)

b.Prepare a tax schedule for year two similar to that we did in class that computes taxes payable and ending balances in the deferred tax asset and deferred tax liability accounts. (22 points)

c. Prepare the journal entry that the company will make for year two. (6 points)

d.Prepare an income statement starting at Income before tax. (3 points)

e.What information is reported in the balance sheet as of the end of year two? Be clear whether it is an asset or liability, current or long term. (3 points)

f.Because of Covid, this year you became concerned about the ability to realize the benefits of deferred assets such that the company believes only 60% of the DTA will be realized. What additional journal entry should be made? And then, at what amount would the deferred accounts be reported on the financials? (4 points)

Sample Solution

such as divorce, death, living overseas, or imprisonment. No two students’ situations are the same and by providing a variety of literature to students which covers a variety of parent/guardian situations I hope students feel understood and that they can relate to others and literature provided to them. I also aimed to include books where having a single parent was simply one aspect of the characters life and so it does not define them.

Rationale Of Why Topic Or Area Of Focus Is Important Diverse Literature For Elementary Students

I believe the topic I selected to research is one that is constantly present and necessary in the lives of my students. Children’s literature is a reflection of the culture from which it comes and as a society with many family dynamics, students deserve to be reflected and represented (Gritter, 2017). While not all students will be in a single parent household, it helps them to understand and potentially support their peers who may be in that situation. Discussions and access to diverse literature are important when building a positive classroom community and when teaching students to respect and appreciate the differences of people inside and outside their classroom (Van Horn, 2015). Reading can be such an outlet and escape for so many students and having literature accessible to them that they feel related and connected to only fosters that relationship with books. Students connect to books which have similar characters and issues to them in their life and providing books that reflect their own issues lead to vivacious and eager readers (Serafini & Moses, 2014). Sometimes authors write from their own experiences, books they wish had been available for them when they were in their youth, which leads to accurate and positively represented characters and situations, such as Roald Dahl who wrote about the life, he wished he’d had at school as a child.

Students end up in single or uncommon parent/guardian situations for a variety of reasons, but this does not mean that there should not be literature available to them to help them understand and be more comfortable with what is happening to them in their lives. It is not one story that exists when discussing single parents. Most people think immediately of single mothers, but there is a growing number of single fathers, about 22% of single parent families are single fathers (Census, 2016), single parents through adoption and grandparents who are parents to their grandchildren. All families are valued, and literature needs to be available in the classroom which shows more than just a single story.
Diverse literature is very important to include in all classrooms (Leland et al., 2012) but diverse does not only cover race, religion or economic situation; it also covers who loves and looks after you. Espec

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