A “deferred tax asset” represents: (Select one) overpay An amount that will become taxable in future...

Question

Question

A “deferred tax asset” represents: (Select one) overpay An amount that will become taxable in future...

A “deferred tax asset” represents: (Select one) overpay
1. An amount that will become taxable in future years
2. An amount that will become deductible in future years
3. An amount that will be taxable or deductible in future years

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Differed tax asset represents the amount which is deducted in the current year for income tax purpose and will be deductible in the future years for financial reporting purposes.

The answer is b.

Add a comment

Answer 2

Similar Homework Help Questions

question 1 At the end of 2020, Payne Industries had a deferred tax asset account with...

question 1 At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $95 million attributable to a temporary book-tax difference of $380 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $288 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $684 million and the tax rate is 25%. Required: 1. Prepare the journal...
1. Deferred tax liability, January 1, 2017, $44,400. 2. Deferred tax asset, January 1, 2017, $0....

1. Deferred tax liability, January 1, 2017, $44,400. 2. Deferred tax asset, January 1, 2017, $0. 3. Taxable income for 2017, $105,450. 4. Pretax financial income for 2017, $222,000. 5. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $266,400. 6. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $38,850. 7. Tax rate for all years, 40%. 8. The company is expected to operate profitably in the future. (a) Your answer...
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation $296 $164 16 $356 20 $500 16 Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability 8 2 The enacted tax rate is 25% Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (.e. 1,200 should be entered...

When the carrying amount of an asset exceeds the tax base, there will be a deferred...

When the carrying amount of an asset exceeds the tax base, there will be a deferred tax __________, because the taxation payments have effectively been __________. asset; made in advance of recognising the expense asset; deferred to future periods liability; made in advance of recognising the expense liability; deferred to future periods
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: The enacted tax rate is 25%. Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.) ($ in thousands) Situation 2 3 $272 $308 1 $140 $428 16 16 Taxable...
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: $132 16 ($ in thousands) Situation 2 3 $264 $292 $404 20 20 16 16 76 Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability 2 The enacted tax rate is 25%. Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (i.e....

Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: 17 1 2 $37,000 $77,000 SITUATION Taxable income Amounts at year-end: Future deductible amounts Future taxable amounts Balances at beginning of year, dr (cr): Deferred tax asset Deferred tax liability 4,700 11,300 @ 4,700 $ 1,200 $ 4,52€ 1 ,eee The enacted tax rate is 40% for both situations. Required: For each situation determine the: SITUATION (a) Income tax payable currently...
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 4 Taxable income $ 152 $ 284 $ 332 $ 464 Future deductible amounts 16 20 20 Future taxable amounts 16 16 96 Balance(s) at beginning of the year: Deferred tax asset 2 26 4 Deferred tax liability 8 2 The enacted tax rate is 25%. Required: For each situation, determine the following: (Enter...
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 $120 $252 $268 16 20 1 16 16 $368 20 64 Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability The enacted tax rate is 25% Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation $164 $296 Taxable income Future deductible amounts Future taxable amounts Balance(s) at beginning of the year: Deferred tax asset Deferred tax liability $356 20 16 $500 20 16 294 The enacted tax rate is 25%. Required: For each situation, determine the following: (Enter your answers in thousands rounded to one decimal place (.e. 1.200 should be entered...

A “deferred tax asset” represents: (Select one) overpay An amount that will become taxable in future...

Homework Answers

Add Answer to:
A “deferred tax asset” represents: (Select one) overpay An amount that will become taxable in future...

Post as a guest

Earn Coins

question 1 At the end of 2020, Payne Industries had a deferred tax asset account with...

1. Deferred tax liability, January 1, 2017, $44,400. 2. Deferred tax asset, January 1, 2017, $0....

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

When the carrying amount of an asset exceeds the tax base, there will be a deferred...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced...

A “deferred tax asset” represents: (Select one) overpay An amount that will become taxable in future...

Homework Answers

Add Answer to: A “deferred tax asset” represents: (Select one) overpay An amount that will become taxable in future...

Post as a guest

Earn Coins

Add Answer to:
A “deferred tax asset” represents: (Select one) overpay An amount that will become taxable in future...