i need help doing a case study

Complete requirements 1 to 7 for Case Study Part A and requirements 1 and 2 for Case Study Part B in Excel.

Please submit your solution to the case as a multimedia piece with at least a 2-minute narration summarizing your findings.

Case Study Part A


SuperSports Inc.reported pretax financial income of $260,000 for the year 2016. Taxable income of SuperSports is however different from its pretax financial income because of the items given below.

  • Depreciation deducted on the tax return is $40,000 greater than the depreciation charged on Income Statement.
  • Estimated Warranties Expenses charged to Income Statement is $30,000 but Warranties expenses deductible on tax return are $20,000
  • $3,200 appear in the income statement of SuperSports as Fines and penalties paid.
  • SuperSports received $ 6,000 interest from Tax Saving Municipal Bonds.

Enacted Tax Rate for the year 2016 is 30% and for 2017 is 35%

Required: For the year 2016, SuperSports Inc. requests you to:

  1. Identify items of permanent and temporary difference from the information given
  2. What items of temporary difference result in future taxable amounts and what items will result in future deductible amounts
  3. Compute Taxable Income
  4. Compute current income tax expense/Tax payable
  5. Compute deferred taxes ( Deferred Tax Liability and Deferred Tax Asset)
  6. Record journal entry for Income Tax Expense
  7. Show how deferred taxes will be reported in the Balance Sheet.

Case Study Part B

SuperSports provides you the following pension data for the year 2016.

Service Cost, 2016 $248,000
Projected Benefit Obligation, January 2016 $340,000
Plan assets (fair value), Januray 1, 2016 $360,000
Prior Service Cost – AOCI (2016 amoritization, $25,000) $250,000
Net Loss – AOCI (2016 amoritization, $10,000) $110,000
Actual Return on Plan Assets $45,000
Interest rate and expected return on plan assets 10%
Contributions made to plan assets during 2016


SuperSports requests you to:

  1. Compute pension expense for the year 2016
  2. Record 2016 journal entry for pension expense

Grading Rubrics

Case Study Part A

Requirement Description Points
1 Correct identification of all items permanent and temporary difference 12
2 Correct determination of future taxable and future deductible items 6
3 Computation of correct Taxable Income 20
4 Computation of correct Income Tax Payable/ Current Income Tax Expense 10
5 Correct computation of deferred taxes 10
6 Correct journal entry with correct debit/credit and correct account names and amount 10
7 Correct classification of deferred taxes for balance sheet purpose 7

Case Study Part B

Requirement Description Points
1 Computation of correct pension expense amount 15
2 Correct journal entry with correct debit/credit and correct account names and amount 10