Homework Answers
Ans.A. Neither (X); Neither (X)
B. Temporary (T); Deferred Tax Asset (DTA)
C. Neither (X); Neither (X)
D. Temporary (T); Deferred Tax Liability (DTL)
E. Neither (X); Neither (X)
F. Permanent (P); Deferred Tax Asset (DTA)
G. Temporary (T); Deferred Tax Asset (DTA)
H. Temporary (T); Deferred Tax Liability (DTL)
I. Neither (X); Neither (X)
J. Temporary (T); Deferred Tax Asset (DTA)
K. Neither (X); Neither (X)
L. Temporary (T); Deferred Tax Liability (DTL)
M. Neither (X); Neither (X)
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All differences between the amount of income tax payable and the amount of income tax expense...
Problem 1: For each of the following items, indicate whether it a. involves a Permanent (P)...
Problem 1: For each of the following items, indicate whether it a. involves a Permanent (P) or Temporary (T) difference between financial and taxable income b. represents a Future Deductible Amount (FDA) or a Future Taxable Amount (FTA) or Neither (N) c. will lead to a Deferred Tax Asset (DTA) or a Deferred Tax Liability (DTL) or Neither (N) Por T FDA, FTA, DTA, DTL or N or N Rents received in advance are credited to unearned revenue, but taxed...
Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they...
Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities. 1.Interest is received on an investment in tax-exempt governmental obligations. 2. For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets’ lives are shorter for tax purposes. 3. The tax return reports a deduction for 80% of the dividends received from various corporations. The cost method is...
Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they...
Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities. 1. An accelerated depreciation system is used for tax purposes, and the straight-line depreciation method is used for financial reporting purposes for some plant assets. 2. A landlord collects some rents in advance. Rents received are taxable in the period when they are received. References 3. Expenses are incurred in obtaining tax-exempt income. 4. Costs...
Permanent differences (between revenues and expenses for accounting and tax purposes): can cause Deferred Tax Liabilities...
Permanent differences (between revenues and expenses for accounting and tax purposes): can cause Deferred Tax Liabilities but not Deferred Tax Liabilities to arise can cause neither Deferred Tax Assets nor Deferred Tax Liabilities to arise can cause both Deferred Tax Assets and Deferred Tax Liabilities to arise can cause Deferred Tax Assets but not Deferred Tax Liabilities to arise
7. Choose the correct statement with regard to temporary differences (P). a. income tax expense r...
7. Choose the correct statement with regard to temporary differences (P). a. income tax expense reflects the GAAP treatment for T b. income tax expense reflects the income tax code treatment for T c. income tax expense reflects the GAAP treatment for P d. pretax accounting income usually equals taxable income when there are both current year P and T e corect statement with regard to temporary differences () and permanent (nontemporary) 8. The current year is 20x5 and is...
15. Which of the following statements is correct? a. All current deferred tax liabilities and assets...
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Which of the following are temporary differences that are normally classified as revenues recognized for tax...
Which of the following are temporary differences that are normally classified as revenues recognized for tax purposes after they are recognized in financial income? Select one: O a. Interest Income on Municipal Bonds b. Fines and expenses resulting from a violation of law O c. Advance rental receipts O d. Product warranty liabilities e. Accrued revenues Future net incomes for the Quatro Company are more likely than not. Quatro should: Select one: O a. Recognize all deferred tax assets, but...
3. Deferred tax assets and deferred tax liabilities arise from: a. Permanent differences between book and...
3. Deferred tax assets and deferred tax liabilities arise from: a. Permanent differences between book and tax income. b. Agreements between companies and the Internal Revenue Service to pay taxes currently owed on the installment basis. c. Future taxable and future deductible items, respectively. d. Future deductible and future taxable items, respectively. e. All of the above. 4. Kobo Roger Corp.'s taxable income differed from its accounting income computed for this past year. An item that would create a permanent...
Book/Tax Differences Temporary Permanent Difference Reason Book 4,800 1,000 20 5,820 Sales Installment sales Interest Income...
Book/Tax Differences Temporary Permanent Difference Reason Book 4,800 1,000 20 5,820 Sales Installment sales Interest Income Required: Determine which book/tax differences are temp or perm Calculate and enter Federal income tax expense Prepare journal entry to record tax expense Calculate Effective Tax Rate Prepare Deferred Tax Reconcilation for Financial stmt footnote Tax 4,800 300 5 5 5,105 (700) (15) (700) Payments not received municipal bond interest 2,350 2,350 Assumptions: DTA and DTL beginning balances = 0 All DTAs and DTLs...
17-5 conformity between its taxable income and income before taxes. BE17-1. Income Taxes Payable. Immox Company...
17-5
conformity between its taxable income and income before taxes. BE17-1. Income Taxes Payable. Immox Company has conformity between its taxab In Immox's taxes payable are $140,000 and its tax rate is 40%, what is its net income BE17-2. Income Taxes Payable. Limmox Company has conformity between its tas taxes. Limmox Company's net income after taxes is $195,000 ang rmity between its taxable income and income before et income after taxes is $195,000 and its tax rate is 35%. What...
Problem 1: For each of the following items, indicate whether it a. involves a Permanent (P) or Temporary (T) difference between financial and taxable income b. represents a Future Deductible Amount (FDA) or a Future Taxable Amount (FTA) or Neither (N) c. will lead to a Deferred Tax Asset (DTA) or a Deferred Tax Liability (DTL) or Neither (N) Por T FDA, FTA, DTA, DTL or N or N Rents received in advance are credited to unearned revenue, but taxed...
7. Choose the correct statement with regard to temporary differences (P). a. income tax expense reflects the GAAP treatment for T b. income tax expense reflects the income tax code treatment for T c. income tax expense reflects the GAAP treatment for P d. pretax accounting income usually equals taxable income when there are both current year P and T e corect statement with regard to temporary differences () and permanent (nontemporary) 8. The current year is 20x5 and is...
Which of the following are temporary differences that are normally classified as revenues recognized for tax purposes after they are recognized in financial income? Select one: O a. Interest Income on Municipal Bonds b. Fines and expenses resulting from a violation of law O c. Advance rental receipts O d. Product warranty liabilities e. Accrued revenues Future net incomes for the Quatro Company are more likely than not. Quatro should: Select one: O a. Recognize all deferred tax assets, but...
3. Deferred tax assets and deferred tax liabilities arise from: a. Permanent differences between book and tax income. b. Agreements between companies and the Internal Revenue Service to pay taxes currently owed on the installment basis. c. Future taxable and future deductible items, respectively. d. Future deductible and future taxable items, respectively. e. All of the above. 4. Kobo Roger Corp.'s taxable income differed from its accounting income computed for this past year. An item that would create a permanent...
Book/Tax Differences Temporary Permanent Difference Reason Book 4,800 1,000 20 5,820 Sales Installment sales Interest Income Required: Determine which book/tax differences are temp or perm Calculate and enter Federal income tax expense Prepare journal entry to record tax expense Calculate Effective Tax Rate Prepare Deferred Tax Reconcilation for Financial stmt footnote Tax 4,800 300 5 5 5,105 (700) (15) (700) Payments not received municipal bond interest 2,350 2,350 Assumptions: DTA and DTL beginning balances = 0 All DTAs and DTLs...
17-5
conformity between its taxable income and income before taxes. BE17-1. Income Taxes Payable. Immox Company has conformity between its taxab In Immox's taxes payable are $140,000 and its tax rate is 40%, what is its net income BE17-2. Income Taxes Payable. Limmox Company has conformity between its tas taxes. Limmox Company's net income after taxes is $195,000 ang rmity between its taxable income and income before et income after taxes is $195,000 and its tax rate is 35%. What...
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