Study Session 8: Financial Reporting and Analysis: Inventories, Long-Lived Assets, Income Taxes, and Non-Current Liabilities
When using the DEPR sheet on TI BAII Plus and I enter DB = 120 and correct info I do not get the correct Depreciation & RBV/RDV - however if I use DB = 160 and the correct info, I get the correct results.
Result I am looking for is RBV @ end of Yr 3 = 29,184.
I know i can get this by multiplying 57,000(1.2)3
Salvage Value @ Purchase = 15,000
Current Fair Value of item = 27,000
Life = 8
I need some assistance with understanding the following equation. I need to find the adjusted Net Income to calculate gross profit margin. Why is “Charges, included in cost of goods sold for inventory write-downs, after tax” added to Net Income? Also, if these charges are already “after tax”, why do we reapply the tax (1-.3) for this calculation?
Rolby’s adjusted net profit margin must be computed using net income (NI) under FIFO and excluding charges for increases in valuation allowances.
I’m going through some quizzes I found online for the Income Taxes Chapter. I taught I mastered the chapter, but I got a mediocre result on the end of chapter questions, so I turned to some additional quizzes found online. I know this kind of resource can be of doubtful reliability and accuracy, so I would need your help.
What is the difference between Impairment and Revaluation? How is impairment loss reversed? I am very confused between these two
Hello - assuming this has already been asked (didn’t see it in my quick search though), but does anyone have a summary of the changes for the 2019 test? Specifically am looking for changes for operating leases as these are now being added to the balance sheet. Asking as I’m using a set of 2018 KS books that obviously do not reflect the change. Just want to make sure I’m p
A company recognized rent received in advance amounting to $500,000 in the current year. For tax purposes the rental income is taxed at 10% when cash is received. The carrying value and tax base of this liability are closest to:
Tax Base Carrying Value
A. $500,000 $0
B. $0 $50,000
C. $0 $500,000
An Increase in the valuation allowance is most likely to indicate an increase in:
B. shareholder’s equity.
C. net deferred tax liability.
Please explain you reasoning:
Can anyone explain this sentence?
How do I learn, remember, and retain the effects of increasing/decreasing prices and the effects of inflation on COGS and a firm?
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