What is true when income for tax purposes is higher than accounting income? A- Actual income...
What is true when income for tax purposes is higher than accounting income?
A- Actual income taxes payable will be the same as accounting income tax expense
b- Actual income taxes payable will be lower than accounting income tax expense
C- Actual income taxes payable will be higher than accounting income tax expense
D- Accounting income tax expense is the same as actual income tax payable
Homework Answers
C.Actual income taxes payable will be higher than accounting income tax expense.
when the income for tax purpose is higher than the accounting income:
tax payable will be higher than accounting income tax expense, since tax payable is determined on the basis of income for tax purposes.
income tax expense will be based on accounting income and will be low because accounting income is low.
This will even give rise to deferred tax asset, since amount paid is more than income tax expense.
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What is true when income for tax purposes is higher than
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Curry Company reports pretax accounting (book) income of $300,000 for 2019. The items below (included in...
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When income tax expense for a period is greater than income tax payable the difference will...
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Lyons Company deducts insurance expense of $105,000 for tax purposes in 2019, but the expense is...
Lyons Company deducts insurance expense of $105,000 for tax
purposes in 2019, but the expense is not yet recognized for
accounting purposes. In 2020, 2021, and 2022, no insurance expense
will be deducted for tax purposes, but $35,000 of insurance expense
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If the income statement depreciation expense exceeds the tax return depreciation expense, then which of the following de...
If the income statement depreciation expense exceeds the tax return depreciation expense, then which of the following describes the situation: Current year taxable income is lower than accounting income and the firm has a deferred tax asset Current year taxable income is lower than accounting income and the firm has a deferred tax liability Current year taxable income is higher than accounting income and the firm has a deferred tax liability Current year taxable income is higher than accounting income...
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Lyons Company deducts insurance expense of $105,000 for tax
purposes in 2019, but the expense is not yet recognized for
accounting purposes. In 2020, 2021, and 2022, no insurance expense
will be deducted for tax purposes, but $35,000 of insurance expense
will be reported for accounting purposes in each of these years.
Lyons Company has a tax rate of 21% and taxable income of $225,000
at the end of 2019. There were no deferred taxes at the beginning
of 2019....
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