how is income tax expense calculated?

Q: Explain how does the company’s effective tax rate calculated.

A: Effective interest rate:   An effective interest rate is the real return on savings account or any…

Q: what is tax accounting?

A:

Q: What types of income should not be classified as such on a tax return? Why shouldn't they be…

A: Answer Nontaxable income won’t be taxed, whether or not you enter it on your tax return. nontaxable…

Q: What is Marginal tax rate ?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Explain why someone might owe a tax balance

A: The objective of this question is to understand the reasons why an individual might owe a tax…

Q: How do the tax laws and financial accounting standards differ?

A: Financial Reporting:   Financial reporting is the process of disclosing the financial results of the…

Q: What are the capital assets subject to capital gains tax?

A: capital assets are significant piece of property which may be the home ,cars investment property…

Q: what are the characteristics of a good tax system?

A: Tax system is designed by the government of every country which is imposed on the individual’s…

Q: deferred tax assets and deferred tax liabilities

A: The deferred tax assets and deferred tax liabilities arise due to the tax effect of timing…

Q: What is an unrecognized tax benefit and how does it affect a company's current income tax expense?

A: The Meaning of Income Tax: FASB defines income tax as a tax on earnings. It is measured in terms of…

Q: How did you determine the federal income tax amount?

A: The federal income tax is the tax which is payable over the taxable income of the person and this is…

Q: How are deferred tax assets and deferred tax liabilitiesreported on the balance sheet?

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Q: What is the name of the amount of money that can bededucted directly from the computed tax, instead…

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: Who is responsible for substantiating income tax deductions and how are income tax deductions…

A: Introduction: Income is the money that a person or organization receives after investing capital,…

Q: What are the advantages of an indirect tax such as the VAT compared with an income tax?

A: The objective of this question is to understand the advantages of an indirect tax, specifically…

Q: What are the situs rules on income tax situs on sales of goods?

A: Income tax:A tax charged on the income earned by the individual or corporates by the central…

Q: What is the sales tax? Is it an expense or a liability?

A: Sales tax is the tax on sales which is levied by the government. However, sales tax is an indirect…

Q: What Accounting periods and accounting methods available to individuals for tax purposes?

A: Internal Revenue Service (IRS) advises that each taxpayer (individual) must figure taxable income on…

Q: Why are payroll taxes and sales taxes consideredliabilities?

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Q: How is tax accounting different from financial accounting?

A: Accounting: It can be defined as the process of summarizing and recording the company’s financial…

Q: What is the tax base for each of the following taxes? Income Tax GST FBT

A: Taxes are the amount of dues that is being payable to the government on account of income earned,…

Q: Which of the following income is completely exempt from income tax?   Interest received from ISA…

A: "Completely exempt from income tax," means you don't have to pay taxes on that money you earn or…

Q: How does the disposition effect impact investor tax?

A: Introduction: The disposition effect is coined by economists Hersh Shefrin and Meir Statman in a…

Q: How do defreinciate between a accured income and prepaid income

A: Introduction: Accruals: Transactions recorded in the books but not yet received or paid cash called…

Q: What are the distinctions between deferred tax assets and deferred tax liabilities?

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Q: final tax and income tax

A: Tax is a form of compulsory payment made to the government of the country. The amount that is…

Q: Explain the items of gross income and how to tax them: whether at gross or at net, further…

A: •Gross income means all the income earned by an individual from all thhe sources but before tax…

Q: Explain the income tax treatment of the interest accounts

A: Introduction: Interest is the financial charge for the benefit of borrowing money. Interest cost or…

Q: Why is the income tax payable not the same as income tax expense

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Q: How is the Self-Employment (SE) tax calculated?  What types of income are subject to the SE tax

A: Self-employment tax is a combination of Social Security and Medicare taxes The self-employment tax…

Q: Discuss in detail the taxation of interest income. Which is subject to final tax? Which is subject…

A: Interest income- Interest income is the sum paid to a body for lending its funds or hire another…