## FRA

pooja923
Good Student
Posts: 28
Joined: Fri Mar 11, 2016 11:38 am

### FRA

The costs least likely to be included by the CFO as inventory are: Capitalized or Expensed cost? Why? and how?

edupristine
Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

### Re: FRA

Hi Pooja

Expensed cost is Lower in operations(inventory). and in capitalized cost it will be higher because capitalized cost is defined as fixed asset.

pooja923
Good Student
Posts: 28
Joined: Fri Mar 11, 2016 11:38 am

### Re: FRA

edupristine
Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

### Re: FRA

Hi Pooja

because there are 20 team games in which only 12 games are going to play. so the calculation is:
(1,200 × \$1,000 × 12/20) = \$720,000

pooja923
Good Student
Posts: 28
Joined: Fri Mar 11, 2016 11:38 am

### Re: FRA

edupristine
Finance Junkie
Posts: 946
Joined: Wed Apr 09, 2014 6:28 am

### Re: FRA

Hi Pooja
straight-line depreciation per financial reports = 500,000 / 10 = \$50,000
tax depreciation = 500,000 / 5 = \$100,000
temporary difference = 100,000 - 50,000 = \$50,000
deferred tax liability will increase by \$50,000 x 30% = \$15,000