FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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3. Bake Company reported the following information on
December 31, 2020:
Accounts Payable 800,000
Bonds Payable, due 2021
Discount on Bonds Payable
Deferred Tax Liability
4,000,000
400,000
500,000
Dividend Payable, due on February 15, 2022 1,000,000
Income Tax Payable 800,000
Note Payable due January 15, 2022 1,200,000
The deferred tax liability is based on temporary differences
stemming from different depreciation method for financial
reporting purposes.
What total amount should be reported as current liabilities
on December 31, 2020?
a. 6,400,000
b. 7,200,000
c. 7,400,000
d. 7,600,000
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Transcribed Image Text:3. Bake Company reported the following information on December 31, 2020: Accounts Payable 800,000 Bonds Payable, due 2021 Discount on Bonds Payable Deferred Tax Liability 4,000,000 400,000 500,000 Dividend Payable, due on February 15, 2022 1,000,000 Income Tax Payable 800,000 Note Payable due January 15, 2022 1,200,000 The deferred tax liability is based on temporary differences stemming from different depreciation method for financial reporting purposes. What total amount should be reported as current liabilities on December 31, 2020? a. 6,400,000 b. 7,200,000 c. 7,400,000 d. 7,600,000
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