【USCPA】FAR : Deferred taxes “Valuation Allowance”


On its December 31, 2007, balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Shin had reported a current deferred tax asset of $15,000 at December 31, 2006. No estimated tax payments were made during 2007. At December 31, 2007, Shin determined that it was more likely than not that 10% of the deferred tax asset would not be realized. In its 2007 income statement, what amount should Shin report as total income tax expense?

a. $ 8,000
b. $ 8,500
c. $10,000
d. $13,000


前提

Deferred taxes に関する出題。

it was more likely than not that 10% of the deferred tax asset would not be realized” より、Valuation Allowance が登場。

 

Dec 31, 2007
・Income tax payable: 13,000
Current deferred tax asset: 20,000

Dec 31, 2006
Current deferred tax asset: 15,000

 

問われていること

2007 の I/S における total income tax expense の金額。

 

本問について

まず、Dec 31, 2007 における entry to record tax payment.

Dr.
Income tax expense -current  13,000

Cr.
Income tax payable 13,000

 

 

次に、deferred tax asset の増加分。

(2007) 20,000 – 15,000 (2006) = 5,000

Dr.
Deferred tax asset 5,000

Cr.
Tax benefit 5,000

 

 

また、Valuation Allowance も忘れずに。

“Shin determined that it was more likely than not that 10% of the deferred tax asset would not be realized.”

Dec 31, 2007 における Deferred tax asset は 20,000 で、このうち 10% は not be realized とみている。

20,000 * 10% = 2,000 は Valuation Allowance account で仕訳。

Dr.
Income tax expense -deferred  2,000

Cr.
Valuation allowance  2,000

 

 

 

解答

2007 の I/S における total income tax expense の金額。

Income tax expence
—current portion
—deferred portion

current と deferred, 忘れずに足す。

13,000 + 2,000 = 15,000

 

ここで、Tax benefit に着目してみる。

$5,000 の Tax benefit = decrease of Income tax expense -deferred

 

したがって、15,000 – 5,000 = 10,000