UGBA 120AB Study Guide - Final Guide: Deferred Tax, Preferred Stock, Expected Return

• School: Berkeley
• Department: Business Administration, Undergraduate
• Course: UGBA 120AB
• Professor: Stanton

Document Summary

It"s more likely than not that the deferred tax asset will be realized so there"s no need for a valuation allowance and the account is removed. Valuation allowance--deferred tax asset ([ x ]- ) Three-fourths of the deferred tax asset will not be realized because one-fourth of the deferred tax asset will be realized. The adjusting entry includes the amount necessary to achieve the required balance because there is already a balance in the valuation at the beginning of the year. Income tax payable ( million x 40%) ($ in millions) Prior year current yr future deductible amts [total] Chapter 17 homework: e17-6, e17-7, e17-13, e17-16 ($ in millions) Service cost: x= 360 36 + 54 = million. Cash contributions: x= 700 77 + 66 = million. The threshold is 10% times the larger of either the pbo or plan assets (beginning of the year). Plan assets (expected return on assets) ($ in millions)