Alexa D.

Certified Accountant with Public Experience

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Basic Math

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Question:

Ralph is 5 years older than Miles. In 5 years, Ralph will be exactly twice Miles' age. How old are Ralph and Miles today, respectively? a.) 5 and 0 b.) 5 and 1 c.) 6 and 2 d.) 12 and 6.

Alexa D.

Answer:

The correct answer is A. The easiest way to solve is to check each multiple-choice selection. If Ralph is 5 today and Miles is 0 today, then in 5 years Ralph will be 10 and miles will be 5. 5*2 = 10.

Algebra

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Question:

Simplify the equation in order to solve for x. 4(x+3) = 12(y+2)

Alexa D.

Answer:

1. Simplify the equation to remove multiplication. 4x + 12 = 12y + 24 2. Isolate 4x. 4x = 12y + 12 3. Simplify to isolate x. x = 3y + 3

Accounting

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Question:

You are working for a company that currently depreciates a particular fixed asset using a 10 year useful life for book purposes and a 5 year life for tax purposes. The asset was purchased on 1/1/2014 for $20,000 and you are currently calculating your cumulative deferred tax asset or deferred tax liability for the 2017 fiscal year. What is the cumulative DTA or DTL on this particular asset?

Alexa D.

Answer:

The company is in a cumulative DTL position. The net book value for the asset is currently $12,000 ($20,000-(($20,000/10)*4)) and the net tax value is $4,000 ($20,000-(($20,000/5)*4)). The cumulative DTL is $8,000.

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