Professional Documents
Culture Documents
2008
( )
FA3
2006
2008-5-14
Question 1 22040
1
10
11
12
13
14
15
16
17
18
19
20
Question 2 22040
1
10
11
12
13
14
15
16
17
18
19
20
5. c
9. c
10.c
11.d
12.c
14.a
17.c
19.b
20.d
Question 3 10
(a)
2
Total
Future taxable (deductible) amounts:
Depreciation
$300,000
Litigation
(45,000)
Unearned rent
(25,000)
2005
2006
2007
2008
$75,000
$75,000
$75,000
$75,000
(45,000)
(25,000)
(b) 2
Temporary Differences
Depreciation
Litigation
Unearned rent
Totals
Future Taxable
(Deductible)
Deferred Tax
Amounts
Tax Rate
(Asset)
$300,000
30%
(45,000)
30%
$(13,500)
(25,000)
30%
( 7,500)
$180,000
$(21,000) 90,000
Question 4 10
(a)5 Service cost (projected benefits approach)
Interest on projected benefit obligation (10% $560,000)
Expected return on plan assets (9% $525,000)
Amortization of prior service cost (1)
Amortization of loss (2)
Pension expense
(1)
(2)
Liability
$90,000
132,000
21,000
$450,000
56,000
(47,250)
52,000
22,800
$533,550
$260,000
= $260
1,000
200 $260 = $52,000
Market-related asset value
$525,000
10%
$ 52,500
$560,000
10%
$ 56,000
$170,000
56,000
Amount to be amortized
$114,000
= $22,800
5 years
(b)5 Pension Expense ............................................................................................
Prepaid/Accrued Pension Cost ............................................................
98,550
Cash
........................................
533,500
435,000