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 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 4,000,000 400,000 c. 7,400,000 d. 7,600,000

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 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 4,000,000 400,000 c. 7,400,000 d. 7,600,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 48P

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