what are the temporary and permanent differences between Taxable and Accounting Income ?
Homework Answers
Temporary difference is when any item of profit or loss account, whether income or expense, which is allowed for accounting purpose but not for taxable purposes or which is allowed for tax purpose but not for accounting purpose.In such case, Deferred tax asset or deferred tax liability is created, as the case may be, which is reversible in the future.
Example of temporary difference - Depriciation, advance income.
Permanent difference is when any any income or expense is recognized for accounting purpose but not for tax purpose or which is recognized for tax purpose but not for accounting purpose and such difference is never created as DTA or DTL, means it is non reversible.
Example of permanent differences - Penalties, fines, any specific deduction, expense of meals and entertainment.
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what are the temporary and permanent differences between Taxable
and Accounting Income ?
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Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income:...
Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income: Pretax accounting income Permanent differences $180,30e (13,9e0) 166,400 (11,600) $154, 80e Temporary difference-depreciation Taxable income Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2017 As of December 31, 2018 $11,600 $23,200 The enacted tax rate was 24% for 2017 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2018?
Information for Kent Corp. for the year 2016: Reconciliation of pretax accounting income and taxable income:...
Information for Kent Corp. for the year 2016: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $180,900 Permanent differences (15,500) 165,400 Temporary difference-depreciation (12,900) Taxable income $152,500 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2015 $13,400 As of December 31, 2016 $26,300 The enacted tax rate was 30% for 2015 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2016? $5,360. $7,890. $26,300....
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Alvis Corporation reports pretax accounting income of $580,000, but due to a single temporary difference, taxable income is only $385,000. At the beginning of the year, no temporary differences existed. Required: Assuming a tax rate of 25%, what will be
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Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income: Pretax accounting income Permanent differences $180,30e (13,9e0) 166,400 (11,600) $154, 80e Temporary difference-depreciation Taxable income Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2017 As of December 31, 2018 $11,600 $23,200 The enacted tax rate was 24% for 2017 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2018?
Information for Kenny Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $180,000 Permanent differences (15,000) 165,000 Temporary difference-prepaid expenses_(12,000) Taxable income $153,000 The enacted tax rate was 30%. a. What should Kenny report as the income tax payable at the end of 2021? b. What should Kenny report as income tax expense for 2021?
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