Help me find any of the following. If you can help me find all three that will b

Question

Help me find any of the following. If you can help me find all three that will be helpful too....

5) When an investor uses the equity method to amount for investments in common stock, the investment account will be decreased, when the investor recognizes

A proportionate interest in the net income of the inverse

Periodic amortization of the goodwill related to the purchase

Cash dividend received from the inverse

A proportionate interest in the extraordinary gain of the investee

11) For the year ended December 31, Year 10, Kyre Co. reported pretax financial statement income of $750,000. Its taxable income was $650,000. The $100,000 difference is related to depreciation. What category of difference is the depreciation?

Deductible

Taxable

Permanent expense

Permanent revenue

12) A temporary difference that would result in a deferred tax asset is

Subscriptions received in advance

Excess of tax depreciation over financial accounting depreciation

Interest revenue on municipal bonds

Payment made for a prepaid expense

Explanation / Answer

Ans 5. Investor's investment account will be decreased when cash received from inverse/earlier/prior period,

So in this case option C that is Cash dividend received from the inverse is correct.

Ans 12. Subscription received in advance will be added in income tax profit fully at the time of receipt but in financial accounting only subscription which have been earned will be recognize by company

So in this case income has been charged on higher amount than in financial accounts, so option A is correct that is subscriptions received in advance.

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