PROBLEM 3: EXERCISES 1. Park Co. has the following information for the current year: Pretax income ● • Penalty on late filing of income tax return Interest on borrowings incurred to acquire tax- exempt securities Interest income on government securities Excess of tax depreciation over book depreciation Excess of revenue recognized over taxable income Excess of provision over actual expenditures Advanced rent received (taxable upon receipt) Unrealized loss on change in fair value of investment Temporary differences as at the beginning of the year Income tax rate 900,000 30,000 3,000 9,000 60,000 45,000 54,000 12,000 18,000 30%

PROBLEM 3: EXERCISES 1. Park Co. has the following information for the current year: Pretax income ● • Penalty on late filing of income tax return Interest on borrowings incurred to acquire tax- exempt securities Interest income on government securities Excess of tax depreciation over book depreciation Excess of revenue recognized over taxable income Excess of provision over actual expenditures Advanced rent received (taxable upon receipt) Unrealized loss on change in fair value of investment Temporary differences as at the beginning of the year Income tax rate 900,000 30,000 3,000 9,000 60,000 45,000 54,000 12,000 18,000 30%

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter12: Liabilities: Off-balance-sheet Financing, Retirement Benefits, And Income Taxes

Section: Chapter Questions

Problem 26E

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