true or false: firms are allowed to compute income in one way for reporting purposes and in another way for tax computation purposes
true or false: firms are allowed to compute income in one way for reporting purposes and in another way for tax computation purposes
Accounting for both income tax and financial reporting purposes is governed by U.S. GAAP. Group of answer choices True False
please answer whether the following are true or false TRUE OR FALSE A TRUE B- FALSE 1. Given two possible legal ways of doing a business transaction, one is legally obligated to do the deal in the way that results in the higher income tax. 2. The 100% owner of a Limited Liability Company is personally liable for all debts of the LLC 3. A "C" corporation is allowed an "ordinary and necessary" deduction for dividends paid to shareholders. 4....
How is goodwill amortized? Multiple Choice It is not amortized for reporting purposes or for tax purposes. ) It is not amortized for reporting purposes, but is amortized over a 5-year life for tax purposes. It is not amortized for tax purposes, but is amortized over a 5-year life for reporting purposes. Oo oo C ) It is not amortized for tax purposes, but is amortized over a 15-year life for reporting purposes. It is not amortized for reporting purposes,...
ina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $118,000 34 % 2016 90,000 34 % 2017 (296,000 ) 38 % 2018 229,000 38 % The tax rates listed were all enacted by the beginning of 2015. Prepare the journal entries for 2017 and 2018, assuming that based on the weight of available evidence, it...
In most cases, the depreciation method chosen for financial reporting purposes (GAAP) must also be utilized for income tax reporting (IRS). O True False
Cabot Company reported a pretax operating loss of $50,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25% for 2021 and subsequent years. Assume that Cabot operates in an industry for which NOL carryback is allowed and requests a refund of taxes already paid by electing a loss carryback. Taxable income, tax rates, and income taxes paid in Cabot's first four years of operations were as follows: Taxable Tax Taxes income rates paid 2017 $30,000...
Pina Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $118,000 34 % 2016 90,000 34 % 2017 (296,000 ) 38 % 2018 229,000 38 % The tax rates listed were all enacted by the beginning of 2015. Collapse question part (a) Prepare the journal entries for the years 2015–2018 to record income tax expense (benefit)...
One of the drawback of using Purchasing card is the insufficient data reporting for tax purposes. How can this be solved?
Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn’s first four years of operation were as follows: Taxable Income Tax Rates Income Taxes Paid 2017 $ 60,000 15 % $ 9,000 2018 70,000 15 10,500 2019 80,000 25 20,000 2020 60,000 30 18,000 Required: 1. Prepare the journal entry to recognize the income tax benefit of...
Wynn Farms reported a net operating loss of $225,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn’s first four years of operation were as follows: Taxable Income Tax Rates Income Taxes Paid 2017 $ 73,000 30 % $ 21,900 2018 83,000 30 24,900 2019 145,000 40 58,000 2020 40,000 45 18,000 Required: 1. NOL carrybacks are not allowed for most companies, except for property...