Accounting Chapter 16 Homework Please Let Know You Have Any Questions

subject Type Homework Help
subject Pages 11
subject Words 3226
subject Authors David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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CASES
Analysis Case 161
Requirement 1
Temporary differences originate in one or more years and reverse in one or more
Requirement 2
Intraperiod tax allocation allocates the total income tax expense for a reporting
period among the financial statement items that gave rise to the income tax expense.
Requirement 3
Deferred tax liabilities are not reported individually, but instead combined with
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1610 Intermediate Accounting, 8e
Integrating Case 162
Requirement 1
Because postretirement costs aren’t tax deductible until paid to, or on behalf of,
Requirement 2
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Integrating Case 163
($ in 000s)
Fair value adjustment (to balance) ......................................... 339
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Integrating Case 164
a. This is a correction of an error.
To correct the error:
2016 adjusting entry:
b. This is a correction of an error.
To correct the error:
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Case 164 (continued)
c. This is a change in accounting principle and is reported retrospectively.
To record the change:
Inventory (given) .................................................................. 960,000
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1614 Intermediate Accounting, 8e
Case 164 (continued)
d. This is a correction of an error.
To correct the error:
Retained earnings (net effect) ...................................................... 9,300
e. This is a change in estimate resulting from a change in accounting principle and is
accounted for prospectively.
No entry is needed to record the change
2016 adjusting entry:
Depreciation expense (calculated below) .................................. 57,600
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Case 164 (concluded)
f. This is a correction of an error.
To correct the error:
Equipment (cost) .................................................................. 1,000,000
2016 adjusting entry:
Depreciation expense ($1,000,000 ÷ 10) .............................. 100,000
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1616 Intermediate Accounting, 8e
Communication Case 165
To: Mr. Randy Patey
From: <your name>
Re: Accounting for income taxes
Below is a brief overview of accounting for income taxes and its application to our
situation.
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Real World Case 166
Requirement 1
The journal entry that summarizes the entries Walmart used to record fiscal year-
end 2014 income taxes associated with continuing operations can be reconstructed
from the information provided in the note:
Requirement 2
The net deferred tax liability increased by $101 ($3,313 3,212), which differs
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© The McGraw-Hill Companies, Inc., 2016
Research Case 167
An objective of this case is to acquaint the student with information provided by
the Treasury Department and the IRS on the Internet, and in particular the ability to
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Analysis Case 168
1. Deferred tax assets and deferred tax liabilities are classified as either current or
2. Net current and net noncurrent amounts are presented in the balance sheet, while
total deferred tax assets and total deferred tax liabilities are presented in the
disclosure note. Despite this difference in classification, the numbers shown in the
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1620 Intermediate Accounting, 8e
Analysis Case 169
1. As an example, Kroger's February 1, 2014, income statement reports the income
tax expense for the year as $751 million. The current portion is $638 + 42 = $680
2. Deferred tax assets and deferred tax liabilities are classified as either current or
noncurrent according to how the related assets or liabilities are classified for
financial reporting. A deferred tax asset or deferred tax liability is considered to
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Judgment Case 1610
Requirement 1
Requirement 2
If we follow the argument above, we would reduce the numerator by the deferred
tax: $(21,634 6,249) 1,658. Reducing liabilities would necessitate also
Requirement 3
The counterargument to this approach, though, is similar to other situations in
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1622 Intermediate Accounting, 8e
Trueblood Case 1611
Trueblood Case 1612
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Judgment Case 1613
Requirement 1
($ in millions, except per share amounts)
RUSSELL-JAMES CORPORATION
Income Statement
For the year ended December 31, 2016
Revenues $300
Discontinued operations:
Loss from operations of cosmetics division,
Per share of common stock (100 million shares):
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1624 Intermediate Accounting, 8e
Case 1613 (concluded)
Requirement 2
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Air FranceKLM Case
Requirement 1
AF reported €436 million of deferred taxes at December 31, 2013 as a noncurrent
Requirement 2
Requirement 3

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