Sample CPA Exam Questions
1. At December 31, 2008, Bren Co. had the following deferred income tax items:
• A deferred income tax liability of $15,000 related to a noncurrent asset
• A deferred income tax asset of $3,000 related to a noncurrent liability
• A deferred income tax asset of $8,000 related to a current liability
Which of the following should Bren report in the noncurrent section of its December 31, 2008, balance sheet?
(a) A noncurrent asset of $3,000 and a noncurrent liability of $15,000.
(b) A noncurrent liability of $12,000.
(c) A noncurrent asset of $11,000 and a noncurrent liability of $15,000.
(d) A noncurrent liability of $4,000.
2. For the year ended December 31,2008,Grim Co.’s pretax financial statement income was $200,000 and its taxable income was $150,000. The difference is due to the following:
|
Interest on municipal bonds |
$70,000 |
|
Premium expense on keyman life e insurance |
(20000) |
|
Total |
$50,000 |
Grim’s enacted income tax is 30%. In its 2008 income statement, what amount should Grim report as current provision for income tax expense?
(a) $45,000
(b) $51,000
(c) $60,000
(d) $66,000