課程名稱︰中級會計學
課程性質︰必修
課程教師︰劉心才 (助教名:謝昇峰)
開課學院：管理學院
開課系所︰財務金融學系
考試日期（年月日）︰102.05.01
考試時限（分鐘）：110
是否需發放獎勵金：是
（如未明確表示，則不予發放）
試題 :
Chapter 18-19
A. Multiple Choice (30 points)
1. A sale should not be recognized as revenue by the seller at the time of sale if
A. payment vas made by check.
B. the selling price is less than the normal selling price.
C. the buyer has a right to return the product and the amount of future returns
cannot be reliably estimated.
D. none of these.
2. The percentage-of-completion method must be used when certain conditions
exist. Which of the following is not one of those necessary conditions?
A. Estimates of progress toward completion, revenues, and costs can be
estimated reliably.
B. Total contract revenue can be measured reliably.
C. The buyer can be expected to satisfy some of the obligations under the
contract
D. It is probable that the economic benefits associated with the contract will
flow to the company.
3. Under the cost-recovery method
A. revenue, cost, and gross profit are recognized during production.
B. revenue and cost are recognized during production, but gross profit
recognition is deferred until all costs are incurred.
C. revenue, cost, and gross profit are recognized at the time the contract is
completed.
D. none of these.
4. Cost estimates on a long-team contract may indicate that a loss will result
on completion of the entire contract. In this case, the entire expected loss
should be
A. recognized in the current period, regardless of whether the percentage-of-
completion or cost-recovery method is employed.
B. recognized in the current period under the percentage-of-completion method,
but the cost-recovery method should defer recognition of the loss to the time
when the contract is completed.
C. recognized in the current period under the cost-recovery method, but the
percentage-of-completion method should defer the loss until the contract is
completed.
D. deferred and recognized when the contract is completed, regardless of
whether the percentage-of-completion or cost-recovery method is employed.
5. Occasionally a franchise agreement grants the franchise the right to make
future bargain purchases of equipment or supplies. When recording the
initial franchise fee, the franchisor should
A. increase revenue recognized from the initial franc by the amount of the
expected future purchases.
B. record a portion of the initial franchise fee as unearned revenue which will
increase the selling price when the franchisee subsequently makes the bargain
purchases.
C. defer recognition of any revenue from the initial franchise fee until the
bargain purchases are made.
D. None of these.
6. Assuming a 40% statutory tax rate applies to all years involved, which of
the following situations will give rise to reporting a deferred tax
liability on the balance sheet?
i. A revenue is deferred for financial reporting purposes but not for tax
purposes.
ii. A revenue is deferred for tax purposes but not for financial reporting
purposes.
iii. An expense is deferred financial reporting purposes but not for tax
purposes.
iv. An expense is deferred for tax purposes but not for financial reporting
purposes
A. item II only
B. items I and II only
C. items II and III only
D. items I and IV only
7. Tax rates other than the current tax rate may be used to calculate the
deferred income tax amount on the statement of financial position if
A. it is probable that a future tax rate-change will occur.
B. it appears likely that a future tax rate will be greater than the current
tax rate.
C. it appears likely that a future tax rate will be less than the current tax
rate.
D. the future tax rates have been enacted or substantially enacted.
8. Recognition of tax benefits in the loss year due to a loss carryforward
requires
A. the establishment of a deferred tax liability.
B. the establishment of a deferred tax asset.
C. the establishment of an income tax refund receiv1able.
D. only a note to the financial statements.
9. Eckert Corporation's partial income statement after its first year of
operations is as follows:
Income before income taxes $3,750,000
Income tax expense
Current $1,035,000
Deferred 90,000 1,125,000
Net income $2,625,000
=========
Eckert uses the straight-line method of depreciation for financial reporting
purposes and accelerated depreciation for tax purposes. The amount charged to
depreciation expense on its books this year was $1500,000. No other differences
existed between book income and taxable income except for the amount of
depreciation. Assuming a 30% tax rate,what amount was deducted for depreciation
on the corporation's tax return for the current year?
A. $1,200,000 B. $1,425,000 C. $1,500,000 D. $1,800,000
10. Cross Company reported for the following results for the year ended
December 31,2010, its first year of operations:
Income (per books before income taxes) $750,000
Taxable income $1,200,000
The disparity between book income and taxable income is attributable to a
temporary differences which will reverse in 2011. What should Cross record as a
net deferred tax asset or liability for the year ended December 31, 2010,
assuming that the enacted tax rates in effect are 40% in 2010and 35% in 2011 ?
A. $157,500 deferred tax asset.
B. $180,000 deferred tax liability
C. $180,000 deferred tax asset.
D. $157,500 deferred tax liability.
※ 選擇題答案: CCBAB / CDBDA
B. Problems (70 points)
I. Exercise 18-5 (8 points) (Right of Return)
Organic Growth Company is presently testing a number of new agricultural seeds
that it has recently harvested. To stimulate interest, it has decided to grant
five of its largest customers the unconditional right of return to these
products if not fully satisfied. The right of return extends for 4 months.
Organic Growth sells these seeds on account for ￡1,500,000 on January 2, 2010.
Companies are required to pay the full amount due by March 15, 2010.
Instructions
(a) Prepare the journal entry for Organic Growth at January 2, 2010, assuming
Organic Growth estimates returns of 20% based on prior experience.
(Ignore cost of goods sold.)
(b) Assume that one customer returns the crops on March 1, 2010, due to
unsatisfactory performance. Prepare the journal entry to record this
transaction, assuming this customer purchased ￡100,000 of seeds from
Organic Growth.
(c) Briefly describe the accounting for these sales, if Organic Growth is
unable to reliably estimate returns.
II. Exercise 18-22 (12 points)
E18-22 (Franchise Fee, Initial Down Payment)
On January 1, 2010, Lesley Benjamin signed an agreement to operate as a
franchisee of Campbell Inc. for an initial franchise fee of $50,000. The amount
of $10,000 was paid when the agreement was signed, and the balance is payable
in five annual payments of $8,000 each, beginning January 1,2011. The agreement
provides that the down payment is not refundable and that no future services
are required of franchisor. Lesley Benjamin's credit rating indicates that she
can borrow money at 11% for a loan of this type.
Instructions
(Round to nearest dollar.)
(a) How much should Campbell record as revenue from franchise fees on January
1, 2010? At what amount should Benjamin record the acquisition cost of the
franchise on January 1, 2010?
(b) What entry would be made by Campbell on January 1,2010, if the down payment
is refundable and substantial future services remain to performed by
Campbell?
(c) How much revenue from franchise fees would be recorded by Campbell on
January 1, 2010, if:
(1) The initial down payment is not refundable, it represents a fair measure of
the services already provided, a significant amount of services is still to
be performed by Campbell in future periods, and collectability of the note
is reasonably assure ?
(2) The initial down payment is not refundable and no future services are
required by the franchisor, but collection of the note is so uncertain-that
recognition of the note as an asset is unwarranted?
(3) The initial down payment has not been earned and collection of the note is
so uncertain that recognition of the note as an asset is unwarranted?
III. Problem 18-7 (18 points)
P18-7 (Long-Term Contract with an Overall Loss)
On July 1, 2010, Torvill Construction Company Inc. contracted to build an
office building for Gumbel Corp. for a total contract price of €1,900,000. On
July 1, Torvill estimated that it would take between 2 and 3 years to complete
the building. On December 31, 2012, the building was deemed substantially
completed. Following are accumulated contract costs incurred, estimated costs
to complete the contract, and accumulated billings to Gumbel for 2010, 2011,
and 2012.
At At At
12/31/10 12/31/11 12/31/12
Contract costs incurred to date € 300,000 €1,200,000 €2,100,000
Estimated costs to complete the contract 1,200,000 800,000 -0-
Billings to Gumbel 300,000 1,100,000 1,850,000
Instructions
(a) Using the percentage-of-completion method, prepare schedules compute the
profit or loss to be recognized as a result of this contract for the years
ended December 31, 2010, 2011, and 2012. (Ignore income taxes.)
(b) Using the cost-recovery method, prepare schedules to compute the profit or
loss to be recognized as a result of this contract for the years ended
December 31, 2010, 2011, and 2012. (Ignore income taxes.)
IV Exercise 19-2 (8 points)
E19-2 (Two Differences, No Beginning Deferred Taxes, Tracked through 2 Years)
The following information is available for McKee Corporation for 2010.
1. Excess of tax depreciation over book depreciation, ￡40,000. This ￡40,000
difference will reverse equally the years 2011-2014.
2. Deferral, for book purposes, of ￡25,000 of rent received in advance. The
rent will be recorded as revenue in 2011.
3. Pretax financial income, ￡350,000.
4. Tax rate for all years, 40%.
Instructions
(a) Compute taxable income for 2010.
(b) Prepare the journal entry to record income tax expense, deferred income
taxes, and income taxes payable for 2010.
(c) Prepare the journal entry to record income tax expense, deferred income
taxes, and income taxes payable for 2011, assuming taxable income of
￡325,000.
V. Exercise 19-9 (12 points)
E19-9 (Carryback and Carryforward of NOL, No Temporary Differences)
The pretax financial income (or loss) figures for Synergetics Company are as
follows.
2006 $160,000
2007 250,000
2008 90,000
2009 (160,000)
2010 (350,000)
2011 120,000
2012 100,000
Pretax financial income (or loss) and taxable income (loss) were the same for
all years involved. Assume a 45% tax rate for 2006 and 2007 and a 40% tax rate
for the remaining years.
Instructions
Prepare the journal entries for the years 2008 to 2012 to record income tax
expense and the effects of the net operating loss carrybacks and carryforwards,
assuming Synergetics Company uses the carryback provision. All income and
losses relate to normal operations. (In recording the benefits of a loss
carryforward, assume that it is probable the loss carryforward will be
realized.)
VI. Exercise 19-17 (12 points)
E19-17 (Two Temporary Differences, Tracked through 3 Years, Multiple Rates)
Taxable income and pretax financial income would be identical for Panes Co.
except for its treatments of gross profit on installment sales and estimated
costs of warranties. The following income compute ns have been prepared.
Taxable income 2010 2011 2012
Excess of revenues over expenses
(excluding two temporary differences) $160,000 $210,000 $90,000
Installment income collected 8,000 8,000 8,000
Expenditures for warranties (5,000) (5,000) (5,000)
Taxable income $163,000 $213,000 $93,000
======== ======= =======
Pretax financial income 2010 2011 2012
Excess of revenues over expenses
(excluding two temporary differences) $160,000 $210,000 $90,000
Installment gross profit earned 24,000 0 0
Estimated cost of warranties (15,000) 0 0
Taxable income $169,000 $210,000 $90,000
========= ======== =======
The tax rates in effect are: 2010, 45%; 2011and 2012, 40%. All tax rates were
enacted into law on January 1, 2010. No deferred income taxes existed at the
beginning of 2010. Taxable income is expected in all future years.
Instructions
Prepare the journal entry to record income tax expense, deferred income taxes,
and income tax payable for 2010, 2011, and 2012.