KG Company Had Capital Assets with a Carrying Value of $1,670,000

question 99

Essay

KG Company had capital assets with a carrying value of $1,670,000 and a tax value of $1,560,000.In addition they had an accrued warranty liability of $80,000 of which $20,000 had actually been incurred and golf club dues in the amount of $3,000.Calculate the temporary difference deductible (taxable).

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Definitions:

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified call price.

Noncallable Bonds

Bonds that cannot be redeemed by the issuer before their maturity date.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date, usually at a predetermined price.