For Calendar 2017, Its First Year of Operations, Snow Corp

question 25

Multiple Choice

For calendar 2017, its first year of operations, Snow Corp. reported pre-tax accounting income of $330,000 and taxable income of $600,000. The only reversible difference is accrued warranty costs, which are expected to be paid as follows: The enacted income tax rates are 35% for 2017, 30% for 2018, 2019 and 2020, and 25% for 2021. The deferred tax asset reported on Snow's December 31, 2017 statement of financial position should be

• A)$54,000.
• B)$63,000.
• C)$76,500.
• D)$94,500.

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Definitions:

Human Resource Planning

A process used to determine future human resource requirements and the business processes that will be needed to support and enable those resources by anticipating future business demands, analyzing the impacts of these demands on the organization, determining the current availability of human resources and the applicable business processes, and making decisions on how to effectively adapt and utilize firms’ human resources.

Succession Planning

The process of identifying and preparing suitable employees through development and training to replace key players within an organization as they vacate their positions.

Replacement Planning

A strategic process of identifying and developing potential successors for key positions within an organization to ensure continuity.

Flight Simulators

Training devices that replicate the experience of flying an aircraft, used for pilot education, training, and research.