Chapter 19
\nAccounting in Action: CM2
\nWhen you arrive at CM2forthe afternoon, Connerand Martin are arguing with
\nLopez and Knepp about, of all things, the corporate income taxes. As you walk
\nin, you hear Conner saying, “The corporate rate is always 35%.” For some
\nreason, Knepp is talking about something called SFAS No. 109 that has to do
\nwith how taxes are reported in financial statements (deferred taxes). This
\ndiscussion is not clear to you since you have not yet had a tax course, so you
\nfigure you will learn a lot this aftemoon. (You had no idea at this point how much
\nyou would learn.)
\nInstructions
\nAccess File 4a to perform the following analysis (Excel File). This file contains
\nthe balance sheet and income statement reflecting forecasts for 2013. Review
\nthe income statement and verifv that the tax is indeed 350\/o of income before tax
\nfor both 2012and2013.
\n(a) V Since Knepp has raised the issue of SFAS No. 709, access the
\nFASB Codification and read the information describing the framework now
\nused in accounting for income taxes. Write a memo that you can take to
\nConner and Martin describing the change in focus from the income
\nstatement to the balance sheet. Describe the concepts of permanent and
\ntemporary differences. Give two examples of each and how they reflect
\nthe new focus.
\nContinuing Case 3<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 19 Accounting in Action: CM2 When you arrive at CM2forthe afternoon, Connerand Martin are arguing with Lopez and Knepp about, of all things, the corporate income taxes. As you walk in, you hear Conner saying, “The corporate rate is Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-19517","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/19517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=19517"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/19517\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=19517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=19517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=19517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}