Describe how loss carryforwards, carrybacks and deferred taxes are presented in the financial statements and what...

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Describe how loss carryforwards, carrybacks and deferred taxes are presented in the financial statements and what...

Describe how loss carryforwards, carrybacks and deferred taxes are presented in the financial statements and what the impact of each are.

business accounting

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Answer 1

Answer #1

Simply saying, carry forwards and carry backs do not have any treatment in the books of accounts. They are not shown anywhere in the books.

Whereas deferred tax is treated according to whether, the tax as per books is more or less than tax as per IRS. It is treated as a deferred tax asset or a deferred tax liability according to the payment of tax and tax as per books.

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Answer 2

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Describe how loss carryforwards, carrybacks and deferred taxes are presented in the financial statements and what...

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Describe how loss carryforwards, carrybacks and deferred taxes are presented in the financial statements and what...

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Describe how loss carryforwards, carrybacks and deferred taxes are presented in the financial statements and what...