Intermediate Accounting Final

The total income tax expense for the year was

300 million, decrease in tax assets by 30 million, increase in deferred liabilities, equals 210 million

What is the amount of residual value guaranteed by Reagan to the lessor

36,000

When tax rates are changed subsequent to the creation of a deferred tax asset or liability, GAAP requires that

All deferred tax accounts be adjusted to reflect the new tax rates

Which of the following is true about accounting for contract assets in each balance sheet prior to completion of long-term construction contracts?

Contract assets are likely to be larger if revenue is recognized over time than if revenue is recognized at point in time

Recognizing tax benefits in a loss year due to a net operating loss carryforward requires

Creating a deferred tax asset

Assuming the interest rate for this lease is 10%, how much interest revenue will princess record in 2019 on this lease?

Equipment cost - first payment times the interest rate

The net pension liability is decrease by

Expected return on plan assets

By the lessee, a lessee-guaranteed residual value at the beginning of a finance lease should be

Included as part of lease payments at present value

Slick's used cars sells pre-owned cars on the installment basis and carries its own notes because its customers typically cannot qualify for a bank loan. Default rates tend to be high or unpredictable. However, in the event of nonpayment, slick's can usually repossess the cars without loss. The revenue method Slick's would use is the

Installment sales method or cost recovery method

For classification purposes, a valuation allowance

Is contra to the deferred tax asset and classified as noncurrent

Which of the following is not true about revenue recognition with respect to long-term construction contracts?

Long-term construction contracts typically include multiple performance obligations because of all the different types of goods or services included for each project

Preferred dividends would not be subtracted from earnings when computing basic earnings per share in a year when the dividends are not declared if the preferred stock is:

Noncumulative

The valuation allowance account that is used in conjunction with deferred taxes relates

Only to deferred tax assets

The appropriate asset value reported in the balance sheet by the lessee for an operating lease its

Present value of the lease payments

The tax effect of a net operating loss carryback usually

Results in a current receivable at the end of the NOL year

All investments in debt securities that don't fit the definitions of the other reporting categories are classified as

Securities available for sale

Distinguishing between operating and finance leases is due in large part to the accounting concept of

Substance over form

For a right of use asset under a lease that qualifies as a finance lease because the lease contains a purchase option and the option is reasonably certain to be exercised, the amortization period used by the lessee must be

The economic life of the asset at the time the lease agreement took effect

When the total expenses over the life of an operating lease are compared to the total expenses over the life of a finance lease, one will find that

The expenses of the finance lease and operating lease are equal

GAAP regarding fair value accounting for investments in equity securities will general apply to an investment when the percentage of ownership of another company is

less than 20%

What amount should Peridot report as income tax expense

operating income for 2018 times the income tax rate to get income tax expense