ASSIGNMENT 2 CHAPTER 16 & 17
Kim Johnson
ACC305: Intermediate Accounting II
Jacob Gordon
October 12, 2015

ASSIGNMENT 3 CHAPTER 16 & 17
Exercise 16-24 Future Deferred Classification Taxable Tax (Asset) Current – C (Deductible) Tax Liability Related Balance Sheet Account Noncurrent - NC Amounts Rate C NC Liability – warranty expense C (15) x 40% (6) Depreciable assets NC 120 x 40% 48 Receivable – installment sales C 10 x 40% 4 Receivable – installment sales NC 40 x 40% 16 Allowance – uncollectible accounts C (25) x 40% (10) ____ ____ Net current liability (asset) (12) Net noncurrent liability (asset) 64 Balance Sheet Presentation Current Assets: Deferred Taxes $12 Long Term Liabilities: Deferred Taxes $64

Exercise 16-25 Current Future Year Taxable 2011 2012 2013 2014

Pretax Accounting Income 810 Permanent difference (10) Temporary difference Installment Sales (600) 150 250 200 Taxable Income 200 Enacted tax rate 30% 30% 40% 40% Tax payable Deferred tax liability 45 100 80 Deferred tax liability Ending balance needed 225 Less: Beginning balance 0 Change in balance 225 Journal Entry at the end of 2011 Income tax expense 285 Deferred tax liability 225 Income tax payable 60 Pretax Income 810 Income tax expense (285) Net Income 525 Current Liabilities Deferred taxes 45 Long-Term