In 2024, its first year of operations, Cunningham Company reports $75,000 of income before taxes. Cunningham computes its taxable income after considering the following issues: 1. Cunningham sells various products with an assurance product warranty. Based on industry averages, Cunningham estimates that costs associated with the 2-year warranty will be about $22,000. In 2024, Cunningham incurs $11,000 of costs for warranty claims. 2. Finding itself with surplus cash, Cunningham invests $100,000 in tax-free municipal bonds and earns $8,000 interest in 2024. 3. Cunningham collected $40,000 in November 2024 from a business that wants to rent an unused portion of its warehouse. The $40,000 covers the rental for the two years 2025-2026, and therefore no rental revenue has been recognized for 2024. However, Cunningham must pay taxes on the entire amount collected in 2024. 4. An accelerated depreciation method is used for tax purposes. In 2024, Cunningham reports $20,000 more depreciation expense for tax purposes than it shows in the accounting records. The excess depreciation is expected to reverse in 2026. The enacted tax rate in 2024 is 21%. Required: a. Calculate taxable income for 2024. b. Prepare the journal entry necessary to record income taxes at the end of 2024. C. How would any deferred tax amounts be reported on a classified balance sheet?

discuss how critical thinking skills will make you less likely to be influenced by arguments that are based on fallacies and faulty reasoning.

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Critically evaluate how the breach of ethics by auditors could contribute to expand the audit expectation gap. Your report should include/address the following concerns: 1. Introduce/analyze ethical aspect of auditors and audit expectation gap. 2. Critically examine how different threats to ethics enlarge the audit expectation gap. 3. Propose ways to minimize the threats to ethics and thus the expectation gap of audits. 4. Determine the current developments and future direction of ethical aspects of auditors, and explain how such developments contribute to safeguard the audit profession as a concluding remarks. Include a cover page, an executive summary, a table of contents and references. You may include an appendix if necessary.

Karen finds that many claim forms were rejected because important information was omitted. How might Karen suggest corrections for these omissions?

Some accountants argue that the receiving department should be eliminated. Discuss the objective of eliminating the receiving function. What accounting/audit problems need to be resolved.

what exactly is a cookie jar reserve?  Does using a cookie jar reserve follow GAAP?  Does using a cookie jar reserve appear to be an ethical practice?  Support your opinion.  Your post should be more than a single sentence.

It says they answers are wrong from your example.

Select the best answer for each of the follwing items and give reasons for your choice. a. Which of the following best describes the relationship between assurance services and attest services? (1) While attest services involved financial data, assurance services involve nonfinancial data (2) While attest services require objectivity, assurance services do not require objectivity (3) All attest services require independence. (4) Attest and assurance services are different terms referring to the same types of services