Grisoft Inc.computed a pretax financial income of $40,000 for the first year of its operations ended December 31,2014.Analysis of the tax and book basis of its liabilities disclosed $360,000 in unearned rent revenue on the books that had been recognized as taxable income in 2014 when the cash was received.
The unearned rent is expected to be recognized on the books in the following pattern:
The enacted tax rates for this year and the next four years are as follows:
Use the provisions of FASB Statement No.109.

Question

Grisoft Inc.computed a pretax financial income of $40,000 for the first year of its operations ended December 31,2014.Analysis of the tax and book basis of its liabilities disclosed $360,000 in unearned rent revenue on the books that had been recognized as taxable income in 2014 when the cash was received.
The unearned rent is expected to be recognized on the books in the following pattern:
  The enacted tax rates for this year and the next four years are as follows:
  Use the provisions of FASB Statement No.109.

Quizplus · Accepted Answer

The Answer of Grisoft Inc.computed a pretax financial income of $40,000 for the first year of its operations ended December 31,2014.Analysis of the tax and book basis of its liabilities disclosed $360,000 in unearned rent revenue on the books that had been recognized as taxable income in 2014 when the cash was received.
The unearned rent is expected to be recognized on the books in the following pattern:
  The enacted tax rates for this year and the next four years are as follows:
  Use the provisions of FASB Statement No.109.