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ACG2104 Rasmussen Mod 1 Kiley Co and Dodd Corp Questions

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Rasmussen University
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• Question 1 2 out of 2 points On January 4, 2014, Kiley Co. leased a building to Dodd Corp. for a ten-year term at an annual rental of $150,000. At inception of the lease, Kiley received $600,000 covering the first two years' rent of $300,000 and a security deposit of $300,000. This deposit will not be returned to Dodd upon expiration of the lease but will be applied to payment of rent for the last two years of the lease. What portion of the $600,000 should be shown as a current and long-term liability in Kiley's December 31, 2014 balance sheet? Current Liability / Long-term Liability Selected Answer: $150,000 / $300,000 Answers: $0 / $600,000 $150,000 / $300,000 $300,000 / $300,000 $300,000 / $150,000 • Question 2 2 out of 2 points The following trial balance of Reese Corp. at December 31, 2014 has been properly adjusted except for the income tax expense adjustment. Reese Corp. Trial Balance December 31, 2014 • • • Other financial data for the year ended December 31, 2014: Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2016. The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability. During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. ...
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