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Topic: becker pensions page f 6-59 (

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pearljam10
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Joined: 28 Jan 2010
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Posted: 22 Jul 2010 at 16:30 \| IP Logged

Can anyone tell me how they calculated the deferred tax asset of 39,000 in the second journal entry. It is one of the big problems in the appendix. Thank you. I am using becker 2010

CPASTONE
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Joined: 12 Jul 2010
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Posted: 22 Jul 2010 at 16:36 \| IP Logged

It calculated 40% of 97500.

97500 is service cost of $76,500 + interest cost of $81,000 - offsetting expected return on plan assets of $60,000. Hope this helps.

Effective tax rate is give as 40% in the example.

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pearljam10
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Posted: 22 Jul 2010 at 17:42 \| IP Logged

Thank you.

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