60.1K

Verified Solution

Link Copied!

You have been hired as a consultant to advise on how to present the tax differences between books and tax returns on the balance sheet of RFH company. There are a few questionable items which the current controller Mary Sims is confused as to proper presentation. The timing differences are 1) $1,5000,000 as a result of depreciation timing difference (books S-L versus MACRS tax return). 2) There also was a bad debt reserve increase from the prior year of $250,000. RFH Company is a manufacturing company who accrued $300,000 in warranty liability at year-end and could not deduct it on the tax return for this year but warranty will be paid out in the following year. A lawsuit in the amount of $450,000 was accrued on the books at year-end awaiting the final legal court judgment. Prior court cases have ruled that this $500,000 can be paid evenly over 3 years. You have to write a memo to Mary Sims advising her how to classify these temporary tax differences on her books at year-end. In your memo give FASB sources for her that validates your balance sheet presentation.

Gather data from multiple sources and present that data in one to two pages (12-point font, double-spaced). Be sure to document your sources.

To clarify, you need to gather the actual information from your sources (for your project) and present that information in a one to two page paper. I am not asking you to analyze the data. I am only asking you to present the information you found that will assist you with analyzing and coming to an educated conclusion. You will analyze it and explain the relevance of the data next week.

please give me your resources .

Answer & Explanation Solved by verified expert

See Answer