Homework Answers
option c is correct. an asset created when a company prepays its income tax to the IRS
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Question 13 Which of the following best describes a deferred tax asset? O An asset created...
Question 13 7.6 pts Which of the following best describes a deferred tax asset? O An...
Question 13 7.6 pts Which of the following best describes a deferred tax asset? O An asset created when a company purchases tax-free bonds. O An asset created by deferring a tax benefit to a future period. O An asset created when a company prepays its income taxes to the IRS. O An asset created by deferred a tax obligation to a future period.
Deferred Income Tax arises Question 6 1 pts Deferred Income Tax arises O when taxable income...
Deferred Income Tax arises
Question 6 1 pts Deferred Income Tax arises O when taxable income under IRS rules is higher than taxable income under GAAP. O when taxable income under IRS rules is lower than taxable income under GAAP. o when a company doesn't have the cash to pay their tax bill. o when a company pays their corporate taxes late.
Question 1 7.7 pts Which of the following best describes a company's statutory tax rate? O...
Question 1 7.7 pts Which of the following best describes a company's statutory tax rate? O The rate tax law says a company should pay given its level of income. O The tax rate reflected on a company's income statement. O The tax rate a company actually pays to the IRS The tax rate a company pays in the state in which it is incorporated. O Next
Question 6 1 pts Deferred Income Tax arises O when a company pays their corporate taxes...
Question 6 1 pts Deferred Income Tax arises O when a company pays their corporate taxes late. O when a company doesn't have the cash to pay their tax bill. O when taxable income under IRS rules is lower than taxable income under GAAP. O when taxable income under IRS rules is higher than taxable income under GAAP.
QUESTION 10 Which of the following statements concerning deferred taxes is correct? O A. Deferred taxes...
QUESTION 10 Which of the following statements concerning deferred taxes is correct? O A. Deferred taxes will not be found in the asset section of a balance sheet. OB. Deferred taxes arise from permanent differences in GAAP and tax accounting. OC. Deferred taxes will only decrease when a cash payment is made. OD. Deferred taxes arising from the depreciation of a specific asset will ultimately reduce to zero as the item is depreciated.
Question #1 At the end of 2017, Payne Industries had a deferred tax asset account with...
Question #1 At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $38 million attributable to a temporary book-tax difference of $95 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $85 million. Payne has no other temporary differences. Taxable income for 2018 is $240 million and the tax rate is 40%. Payne has a valuation allowance of $11 million for the deferred tax asset at...
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...
At December 31, 2019. Acme Inc. had the following deferred tax balances: Deferred tax liability Deferred...
At December 31, 2019. Acme Inc. had the following deferred tax balances: Deferred tax liability Deferred tax asset Valuation allowance $ 52.500 84,000 21.000 These deferred tax balances relate to two items. First, Acme has recorded excess tax deductions related to its plant assets. At December 31, 2019 plant assets had a book value of $1,000,000 and a tax basis of $750,000 Second, Acme had a NOL carryforward in the amount of $400.000 at December 31, 2019. Acme determined the...
Exercise 19-5 The following facts relate to Pearl Corporation. 1. Deferred tax liability, January 1, 2017,...
Exercise 19-5 The following facts relate to Pearl Corporation. 1. Deferred tax liability, January 1, 2017, $45,600. 2. Deferred tax asset, January 1, 2017, $0. 3. Taxable income for 2017, $108,300. 4. Pretax financial income for 2017, $228,000. 5. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $273,600. 6. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $39,900. 7. Tax rate for all years, 40%. 8. The company is expected...
Exercise 19-10 The following facts relate to Windsor Corporation. 1. Deferred tax liability, January 1, 2017,...
Exercise 19-10 The following facts relate to Windsor Corporation. 1. Deferred tax liability, January 1, 2017, $61,200. 2. Deferred tax asset, January 1, 2017, $20,400. 3. Taxable income for 2017, $107,100. 4. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $234,600. 5. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $96,900. 6. Tax rate for all years, 40%. No permanent differences exist. 7. The company is expected to operate profitably...
Question 13 7.6 pts Which of the following best describes a deferred tax asset? O An asset created when a company purchases tax-free bonds. O An asset created by deferring a tax benefit to a future period. O An asset created when a company prepays its income taxes to the IRS. O An asset created by deferred a tax obligation to a future period.
Deferred Income Tax arises
Question 6 1 pts Deferred Income Tax arises O when taxable income under IRS rules is higher than taxable income under GAAP. O when taxable income under IRS rules is lower than taxable income under GAAP. o when a company doesn't have the cash to pay their tax bill. o when a company pays their corporate taxes late.
Question 1 7.7 pts Which of the following best describes a company's statutory tax rate? O The rate tax law says a company should pay given its level of income. O The tax rate reflected on a company's income statement. O The tax rate a company actually pays to the IRS The tax rate a company pays in the state in which it is incorporated. O Next
Question 6 1 pts Deferred Income Tax arises O when a company pays their corporate taxes late. O when a company doesn't have the cash to pay their tax bill. O when taxable income under IRS rules is lower than taxable income under GAAP. O when taxable income under IRS rules is higher than taxable income under GAAP.
QUESTION 10 Which of the following statements concerning deferred taxes is correct? O A. Deferred taxes will not be found in the asset section of a balance sheet. OB. Deferred taxes arise from permanent differences in GAAP and tax accounting. OC. Deferred taxes will only decrease when a cash payment is made. OD. Deferred taxes arising from the depreciation of a specific asset will ultimately reduce to zero as the item is depreciated.
At December 31, 2019. Acme Inc. had the following deferred tax balances: Deferred tax liability Deferred tax asset Valuation allowance $ 52.500 84,000 21.000 These deferred tax balances relate to two items. First, Acme has recorded excess tax deductions related to its plant assets. At December 31, 2019 plant assets had a book value of $1,000,000 and a tax basis of $750,000 Second, Acme had a NOL carryforward in the amount of $400.000 at December 31, 2019. Acme determined the...
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