12.Which of the following is an example of a change in reporting entity? Multiple Choice...
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Accounting
12.Which of the following is an example of a change in reporting entity?
Multiple Choice
A change in the actuarial life expectancies of employees under a pension plan.
A change in inventory costing methods.
Consolidating a new subsidiary.
A change in the estimated useful life of a depreciable asset.
16.
Illini Inc. operates in two independent tax jurisdictions of Bears and Packers. Its has the following information of its deferred tax assets and liabilities:
Bears:
Deferred tax asset of $5 million
Valuation allowance of $1 million
Deferred tax liability of $14 million
Packers:
Deferred tax asset of $18 million
Deferred tax liability of $2 million
Illini files separate tax returns in Bears and Packers. Illini's balance sheet should have the following disclosure of deferred tax assets and liabilities:
Multiple Choice
A deferred tax asset of $6 million.
A deferred tax liability of $9 million and a deferred tax asset of $20 million.
A deferred tax liability of $9 million and a deferred tax asset of $16 million.
A deferred tax liability of $10 million and a deferred tax asset of $16 million.
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