Reference no: EM132961228

Question -

Q1. A partial listing of a company's accounts is presented below:

Revenues 80,000

Operating expenses 50,000

Foreign currency translation adjustment gain, net of tax 4,000

Income tax expense 10,000

What amount should the company report as Other Comprehensive Income?

Q2. For the year ended December 31, 2016, Beep Inc. recorded pre-tax book income of $600. To compute taxable income for federal income tax purposes, the following items should be noted:

Fines paid to regulators $70

Depreciation deductible for tax purposes in excess of depreciation recorded in GAAP-based book income $80

Statutory corporate income tax rate 35%

By how much did deferred tax liabilities increase?