For financial reporting, income tax expense includes the following two components: Deferred income tax liabilities &...
For financial reporting, income tax expense includes the following two components:
Deferred income tax liabilities & deferred income tax assets
Current income tax & deferred income tax
Income tax payable & income tax refunds
Future deductible amounts & future taxable amounts
Homework Answers
| For financial reporting, income tax expense includes the following two components Current income tax & deferred income tax |
| Current income tax is the tax payable in current period and deferred income tax is tax arising due to timing differences of certain items. |
| Option B Current income tax & deferred income tax is correct |
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For financial reporting, income tax expense includes the
following two components:
Deferred income tax liabilities &...
At the end of 2018, Smith Corporation had no book-tax differences and no deferred income tax...
At the end of 2018, Smith Corporation had no book-tax differences and no deferred income tax assets or deferred income tax liabilities. During the year 2019, two book-tax differences occurred. One was a $10,000 permanent difference that caused taxable income to be larger than financial income. The other was a $110,000 temporary difference that caused taxable income to be smaller than financial income. That $110,000 temporary difference will reverse over the years 2020 and 2021, causing future taxable amounts of...
15. Which of the following statements is correct? a. All current deferred tax liabilities and assets...
15. Which of the following statements is correct? a. All current deferred tax liabilities and assets shall be offset and presented as a single amount on the balance sheet. b. Deferred tax assets related to carryforwards shall be classified as current or noncurrent on the balance sheet based on their expected date of reversal. c. All current and noncurrent deferred taxes shall be offset and presented as a single amount on the balance sheet. d. Deferred tax liabilities and assets...
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and...
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and tax jurisdiction are: a. Reported separately in the balance sheet. b. Reflected only in the notes to the financial statements. C. Combined with noncurrent deferred tax assets and noncurrent deferred tax liabilities in the balance sheet to show a single net noncurrent among. d. Netted against one another and show as a net current asset or liability in the balance sheet. 7) of the...
Please check my answers. 1. Prepare Journal Entry to record income tax expense, deferred taxes, and...
Please check my answers.
1. Prepare Journal Entry to record income tax expense, deferred taxes, and income taxes payable for 2018 2. Draft the income tax expense section of the Income Statement, beginning with Income before income taxes". . Write an analysis directed toward the team at Good Company describing what the numbers mean and how they relate to the business. Information: Good Company began operations in 2018 and has provided the following information: 1. Pretax financial income for 2018...
Requirements: 1. Prepare Journal Entry to record income tax expense, deferred taxes, and income taxes payable...
Requirements: 1. Prepare Journal Entry to record income tax expense, deferred taxes, and income taxes payable for 2018. 2. Draft the income tax expense section of the Income Statement, beginning with "Income before income taxes". 3. Write an analysis directed toward the team at Good Company describing what the numbers mean and how they relate to the business. Information: Good Company began operations in 2018 and has provided the following information: 1. Pretax financial income for 2018 is $200,000 2....
Yarman Inc. began business on January 1, 2017. Its pretax financial income for the first 2...
Yarman Inc. began business on January 1, 2017. Its pretax financial income for the first 2 years was as follows: 2007 240,000 2008 560,000 The following items caused the only differences between pretax financial income and taxable income. 1. In 2017, the company collected 180,000 of rent; of this amount, 60,000 was earned in 2017; the other 120,000 will be earned equally over the 2018-2019 period. The full 180,000 was included in taxable income in 2017. 2. The company pays...
Omaha Inc. reports $156,000 financial income for 2018, before adjusting the following differences for tax reporting...
Omaha Inc. reports $156,000 financial income for 2018, before adjusting the following differences for tax reporting purpose. 1. Pollution fine of $25,000 was paid and recorded. 2. Installment sales result in gross profit recognized for financial reporting purposes in excess of gross profit recognized for tax purposes by $13,000 3. Warranty expenses deducted for financial reporting exceeded warranty costs deducted for income taxes by $10,500. 4. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by...
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...
The following facts relate to Fulya Company. 1. Deferred tax liability, January 1, 2015, is $40,000....
The following facts relate to Fulya Company. 1. Deferred tax liability, January 1, 2015, is $40,000. 2. Deferred tax asset, January 1, 2015, is $0. 3. Taxable income for 2015, $115,000. 4. Pretax financial income for 2015, is $200,000. 5. Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000. 6. Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35,000. 7. Tax rate for all years, 40%. 8. The company is...
Assume Abbee Industries (AI) starts the current year, 2016, with a deferred tax asset balance of...
Assume Abbee Industries (AI) starts the current year, 2016, with a deferred tax asset balance of $2,000 and a deferred tax liability balance of $4,000. The current statutory tax rate, which is projected to be in effect when temporary differences reverse, is 30%. The reported pre-tax accounting income is $250,000. Analyze the following items to determine taxable income and income taxes payable, the change in deferred taxes payable (future taxable and deductible amounts), and tax expense for 2016. Assume there...
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and tax jurisdiction are: a. Reported separately in the balance sheet. b. Reflected only in the notes to the financial statements. C. Combined with noncurrent deferred tax assets and noncurrent deferred tax liabilities in the balance sheet to show a single net noncurrent among. d. Netted against one another and show as a net current asset or liability in the balance sheet. 7) of the...
Please check my answers.
1. Prepare Journal Entry to record income tax expense, deferred taxes, and income taxes payable for 2018 2. Draft the income tax expense section of the Income Statement, beginning with Income before income taxes". . Write an analysis directed toward the team at Good Company describing what the numbers mean and how they relate to the business. Information: Good Company began operations in 2018 and has provided the following information: 1. Pretax financial income for 2018...
Omaha Inc. reports $156,000 financial income for 2018, before adjusting the following differences for tax reporting purpose. 1. Pollution fine of $25,000 was paid and recorded. 2. Installment sales result in gross profit recognized for financial reporting purposes in excess of gross profit recognized for tax purposes by $13,000 3. Warranty expenses deducted for financial reporting exceeded warranty costs deducted for income taxes by $10,500. 4. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by...
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...
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