2. You, are the senior auditor assigned to the True Ltd. audit file. You are reviewing Truestar’s financial statements and note that the only items included on True’s balance sheet that have temporary differences for future income taxes are: intangible assets relating to deferred development costs of $20,000, a leased asset of $80,000, and a lease obligation of $69,000. True’s tax rate is 20% and the company uses the future income tax method to account for income taxes. At the end of last year, True’s future income tax liability was $7,000. Calculate True’s future tax expense/recovery for the current year? a. $4800 recovery b. $6200 expense c. $3000 recovery d. $800 recovery

The statement of financial position (balance sheet) of Omni-Pave Company reports assets of $7,800,000.  Ellen Martin advises you that a major accounting firm has audited the statements and attested that they were prepared in accordance with Generally Accepted Accounting Principles.  She tells you that she can buy the total owner's interest in the business for only $5,400,000 and is seriously considering the opportunity.  She says that the auditor's unqualified opinion validates the $7,800,000 value of the assets.  Ellen believes she would be foolish to pass up the opportunity to purchase the assets at a price of only $5,400,000.  What part of the accounting equation is Ellen failing to consider?  Comment on Ellen's misconceptions regarding the auditor's role in providing information that is useful in making investment decisions.

The company's equity and results (before tax) for the fiscal year 2021 are € 1,200,000 and € 390,000 respectively. How will these two sizes be formed (answer using a table) if there are the following observations of the statutory auditor: The company had created a provision for staff compensation for the first time with an amount of € 20,800 in 2017 and increased it by € 13,000 in 2020 and by € 3000 in 2021. According to an actuarial study, this provision at the end of the closed financial year 2021 should amount to € 44,800, of which € 33,500 concern the previous years. The company erroneously never depreciated the fixed asset acquired on 01/10/2019, with a purchase value of € 31,000 and a residual value of € 900. The useful life of this fixed asset is 12 years. During 2020, the company erroneously transferred to a multi-year / 5-year depreciation account an expense of € 16,000 Make as many annotations as necessary, and display your calculations. The answer must be in a table format…

Subject: acounting