Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific citation for accounting for each of the following items: 1. The specific items to which income tax expense is allocated for intraperiod tax allocation. 2. The tax rate used to calculate deferred tax assets and liabilities. 3. The required disclosures in the notes to financial statements for the components of income tax expense.

Q: Please describe the objectives behind FASB ASC Topic 740, Income Taxes, and the income tax provision…

A:

Q: tax allocation

A: Correct Answer 1 :- D The purpose is to relate the income tax expense to the items which affect the…

Q: Pronghorn Enterprises Ltd., a private company following ASPE earned accounting income before taxes…

A: Calculation of current income tax expenseParticulars$Net profit before tax as per accounts $…

Q: Describe the types of temporary differences that cause deferred tax liabilities and determine the…

A: Deferred tax liabilities It is a type of liability that arises due to the difference between the tax…

Q: Which of the following tax accounting methods least likely defers payment of taxes?     Spread Out…

A: Spready Out method: Under this method revenue is recognised over a period of time. Lets make an…

Q: n general, the answer to all tax questions or issues must be traced to: A. Supreme Court…

A: Tax questions or issues may arise in the normal course of business. There are different kinds of tax…

Q: All of the following are calculated on Form 990-PF, EXCEPT:    Excise tax on investment income.…

A: It is the return of private foundation or Section 4947(a)(1) Trust Treated as Private Foundation.

Q: Briefly explain each filing status. How does filing status affect who must fileincome taxes? How…

A: Filing Statuses and Their Impact on Tax Filing and DeductionsFiling status determines several…

Q: Statement 1: Life insurance premiums shall be reported as a deductible expense for financial…

A: Tax is the liability that person owes to the government.

Q: Objective-type Question: According to the Accounting Tax Principle, when should taxes be recognized…

A: The accrual base of accounting records earnings and charges when they're earned or incurred, anyhow…

Q: An official IRS statement issued by the National Office that provides an interpreation of how the…

A: Internal Revenue Service (IRS): It implies to an agency of U.S federal government that is made for…

Q: Describe the objectives behind FASB ASC Topic 740, Income Taxes, and the income tax provision…

A: Every financial statements includes current tax and deferred tax expense and provision thereof. ASC…

Q: Describe the current convergence efforts of the FASB and IASB in the area of accounting for taxes.

A: The converging of accounting standards stands for the objective of setting up accounting standards…

Q: For each item below, indicate whether it involves: 1. 2. 3. Use the appropriate number to indicate…

A: A deferred tax asset is a business tax credit for future taxes, and a deferred tax liability means…

Q: a. Mr. Sabado signified his intention to be taxed at 8% income tax rate on his income. b. Mr. Sabado…

A: Gross taxable income refers to the total income earned by an individual or entity from various…

Q: Explain the Revenue Related to Deferred Tax Liabilities.

A: Deferred tax liability is explicitly made when an expense commitment gathered in one budgetary year…

Q: Under a self-assessment system, taxpayers are required to: i. file estimated income tax returns. ii.…

A: Self Assessment Tax means the amount that an assessee pays on the requisite income after deducting…

Q: A major responsibility of the Government Accountability Office is to audit taxpayers’ returns to…

A: The GAO (Government Accountability Officer) serves as a congressional watchdog over government…

Q: analyze disclosures relating to deferred tax items and the eff ective tax rate reconciliation,and…

A: Disclosures relating to deferred tax items can provide valuable information to the analysts. But the…

Q: Schedule B - Include interest and dividends. Schedule 1 - Include additional income and adjustments.…

A: On Schedule B, you need to report the interest and dividends. In this case, the interest income from…

Q: The Internal Revenue Code contains three general categories of currently deductible expenses…

A: THE CATEGORIES WHICH ARE NOT INCLUDED ARE  1. EXPENSES INCURRED FOR PERSONAL EXPENSES 2. EXPENSES…

Q: Identify the major payroll tax forms and describe the purpose of each.

A: Payroll tax refers to the percentage which is withheld from the pay or salaries of the employee…

Q: Describe the types of temporary differences that cause deferred tax assets and determine the amounts…

A: Deferred tax liabilities It is a type of liability that arises due to the difference between the tax…

Q: The amount of tax assessed by the ATO based on the entity's operations for the period will be…

A: Income taxes are amount or dues which is payable by business or individual on amount of income…

Q: Which of the following items is generally a Schedule M-1 adjustment? a.Rent payments b.Gross sales…

A: An essential part of a company's tax return is the Schedule M-1 Adjustment. It is used to reconcile…

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest…

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order…

Q: Additional disclosures are required pertaining to deferred tax amounts reported on the balance…

A:

Q: the total income tax expense for the current period.  b. the prima facie tax on accounting profit…

A: The tax is an expense for the company but becomes a liability when payable.

Q: Propose a tax measure in order for the government to eaarn addtional revenue with emphasis ont he…

A: Since you have asked two questions but we provide solution to one question only kindly resubmit…

Q: Accounting for uncertainty in tax positions is prescribed by GAAP in FASB ASC 740–10: Income Taxes–…

A: GAAP:GAAP stands for “Generally Accepted Accounting Principles”. It provides the accounting rules…

Q: Intraperiod tax allocation relates income tax expense to the items that affect the amount of tax. O…

A: Income tax is calculated on income of each year in total. Intraperiod means within one period.

Q: Accounting profit is O A. The The profit or loss is for a period determined before deducting in…

A: There are two types of income. One is accounting income, and the other is taxable income. Tax…

Q: Statements of procedures that affect the rights and obligations of taxpayers or the public in…

A: As per IRC, a revenue procedure seems to be a statement of procedure that affects taxpayers' rights…

Q: ccompany the Corporation Tax return when it is  filed

A: Everyone, it might be a company or a person is required to fill out the tax return. Depending upon…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.