Because good will is amortized over 15 years for tax purposes, but is not amortized for...
Because good will is amortized over 15 years for tax purposes, but is not amortized for financial reporting:
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a. |
impairment of goodwill will result in a deferred tax liability. |
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b. |
there are no deferred tax implications. |
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c. |
a deferred tax liability results from amortization which will not be utilized until goodwill is impairment adjusted or the company is later sold. |
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d. |
a subsidiary will include any goodwill amortization the parent deducts in its taxable income. |
Homework Answers
option C
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Because good will is amortized over 15 years for tax purposes, but is not amortized for...
How is goodwill amortized? Multiple Choice It is not amortized for reporting purposes or for tax...
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,...
acquired goodwill is considered to be section 197 asset amortized over 15 years for tax purposes...
acquired goodwill is considered to be section 197 asset amortized over 15 years for tax purposes true or false
Acquired goodwill is considered to be a selection 1977 assest amortized over 15 years for tax...
Acquired goodwill is considered to be a selection 1977 assest amortized over 15 years for tax purposes true or false
International Roofing Systems (IRS) Company began operations several years ago. At the end of 2017, the...
International Roofing Systems (IRS) Company began operations several years ago. At the end of 2017, the only existing temporary differences were the difference described in (e) and (f) below (hint: this creates balances at the end of 2017 in the deferred tax balance sheet accounts). In addition, there are four other tax differences arising in 2018 and 2019. These differences are as follows: (a) Interest revenue earned on an investment in tax-exempt municipal bonds is $34,000 each year. (b) In...
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...
LO 14-4) balance sheet amounted to $350,000. Assume that the income tax rate was 21%. Required:...
LO 14-4) balance sheet amounted to $350,000. Assume that the income tax rate was 21%. Required: What amount should be reported as the deferred portion of the provision for income taxes in Lexington's income statement for the year ended December 31, 20X1? AICPA ADAPTED P 14-4 Nelson Inc. purchased machinery at the beginning of 20X 1 for $90,000. Management used the straight-line method to depreciate the cost for financial reporting purposes and the sum-of-the- years' digits method to depreciate the...
Listed below are items that are commonly accounted for differently for financial reporting purposes than they...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes...
Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference....
Listed below are items that are commonly accounted for differently for financial reporting purposes than they...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
1. For each of the following items indicate the following: [17 marks] i. Is the item...
1. For each of the following items indicate the following: [17 marks] i. Is the item a eversing ii. Ifit is a reversing difference will it usually give rise to a deferred tax asset or deferred tax liability (timing) difference or a permanent difference? iii. Will the amount in the current year be added to or deducted from accounting income to arrive at taxable income? g. h. i. j. k. Proceeds are received from a life insurance company because of...
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,...
International Roofing Systems (IRS) Company began operations several years ago. At the end of 2017, the only existing temporary differences were the difference described in (e) and (f) below (hint: this creates balances at the end of 2017 in the deferred tax balance sheet accounts). In addition, there are four other tax differences arising in 2018 and 2019. These differences are as follows: (a) Interest revenue earned on an investment in tax-exempt municipal bonds is $34,000 each year. (b) In...
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...
LO 14-4) balance sheet amounted to $350,000. Assume that the income tax rate was 21%. Required: What amount should be reported as the deferred portion of the provision for income taxes in Lexington's income statement for the year ended December 31, 20X1? AICPA ADAPTED P 14-4 Nelson Inc. purchased machinery at the beginning of 20X 1 for $90,000. Management used the straight-line method to depreciate the cost for financial reporting purposes and the sum-of-the- years' digits method to depreciate the...
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference....
Listed below are items that are commonly accounted for
differently for financial reporting purposes than they are for tax
purposes.
For each item below, indicate whether it involves:
(1)
A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income
tax asset.
(2)
A temporary difference that will result in future taxable
amounts and, therefore, will usually give rise to a deferred income
tax liability.
(3)
A permanent difference.
Use the...
1. For each of the following items indicate the following: [17 marks] i. Is the item a eversing ii. Ifit is a reversing difference will it usually give rise to a deferred tax asset or deferred tax liability (timing) difference or a permanent difference? iii. Will the amount in the current year be added to or deducted from accounting income to arrive at taxable income? g. h. i. j. k. Proceeds are received from a life insurance company because of...
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