# (TCO A) In accounting for a long-term construction-type contract using the percentage-of-completion method, the gross

\$9.99

1. (TCO A) In accounting for a long-term construction-type contract using the percentage-of-completion method, the gross profit recognized during the first year would be the estimated total gross profit from the contract, multiplied by the percentage of the costs incurred during the year to the
• (TCO A) Tim Construction Co. began operations in 2014. Construction activity for 2014 is shown below. Tim uses the completed contract method.
 Contract Contract Price Billings Through 12/31/14 Collections Through 12/31/14 Costs to 12/31/14 Estimated Costs to Complete 1 \$5,200,000 \$3,500,000 \$2,600,000 3,000,000 1,000,000 2 3.600,000 1,500,000 1,000,000 800,000 1,600,000 3 3,600,000 1,900,000 1,800,000 2,250,000 1,200,000

• What amount of Gross Profit should Tim show on the Income Statement of 2014 related to Contract 3?
1. (TCO B) K  Corporation's partial income statement after its first year of operations is as follows:
Income before Income Taxes        \$3,750,000
Income Tax expense
Current                 \$1,035,000
Deferred                      90,000
__________      1,125,000
__________
Net Income                                    \$2,625,000
K uses the straight-line method of depreciation for financial reporting purposes and accelerated depreciation for tax purposes. The amount charged to depreciation expense on its books this year was \$1,200,000. No other differences existed between book income and taxable income except for the amount of depreciation.
Assuming a 30% tax rate, what amount was deducted for depreciation on the corporation's tax return for the current year?
2. (TCO B) Deferred taxes should be presented on the balance sheet
3. (TCO C) On January 1, 2008, Nen Co. has the following balances:
Projected benefit obligation    \$4,200,000
Fair value of plan assets           3,750,000
The settlement rate is 10%. Other data related to the pension plan for 2014 are:
Service cost                                                             \$240,000
Amortization of unrecognized prior service costs    54,000
Contributions                                                              270,000
Benefits paid                                                              225,000
Actual return on plan assets                                      264,000
Amortization of unrecognized net gain                      18,000
The fair value of plan assets at December 31, 2014 is
4. (TCO C) Presented below is pension information related to Woods, Inc. for the year 2013.

Service cost                                                                                \$135,000
Interest on projected benefit obligation                                           \$46,000
Interest on vested benefits                                                            \$30,000
Amortization of prior service cost due to increase in benefits            \$14,000
Expected return on plan assets                                                     \$21,000

The amount of pension expense to be reported for 2013 is
5. (TCO D) Lease methods of accounting are