In computing the change in deferred tax accounts, which tax rates are used?A. Current tax ratesB. Past years' tax ratesO c. Enacted future tax ratesO D. Estimated future tax rates

SOLUTION- DEFERRED TAX LIABILITY AS BEING THE AMOUNT OF INCOME TAX PAYABLE IN FUTURE PERIODS IN…

Answered: In computing the change in deferred tax…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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how to calculate someones adjusted basis in tax
Tax rates other than the current tax rate may be used to calculate the deferred income tax amount for financial statement reporting if O it is probable that a future tax rate change will occur. O it appears likely that a future tax rate will be greater than the current tax rate. O it appears likely that a future tax rate will be less than the current tax rate. O the enacted tax rate is expected to apply in future years.
1. Name three types of tax rate structure and give examples. 2. What type of tax is sales tax? 3. Define and compare these terms: Average tax rate and Marginal tax rate
the future effects on income taxes, as measured
0 How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?
Sales tax payable, accounts payable, payroll liabilities and unearned revenue are all examples of: Group of answer choices long-term liabilities unknown liabilities current assets current liabilities
A deferred tax liability uses a. Expected future tax law, regardless of whether those expected laws have been enacted b. Current tax laws, unless enacted future tax laws are different c. Either current or expected future tax laws, regardless of whether those expected laws have been enacted. d. The current tax laws, regardless of expected or enacted future tax laws
Expenditures currently deducted in the tax return but not included with expenses in the income statement until subsequent years create deferred tax liabilities. O True O False
How might a reduction in future tax rates affect deferred tax assets in a way that reduces current net income?
How are deferred tax assets classified as current or non-current on the balance sheet?
How are deferred tax assets and deferred tax liabilities classified and reported in the financial statements?
Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. Code Letter Term Code Letter Term A. Future deductible amount H Deferred tax consequences B Income tax payable (or refund) I Future taxable amount Operating loss carryback Deferred tax liability D Valuation allowance K Temporary difference E Deferred tax asset Income tax expense (or benefit) F Operating loss carryforward M Deferred tax expense (or benefit) Taxable income Required: Indicate which term belongs with each definition by choosing the correct term. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively X 3. Temporary…

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In computing the change in deferred tax accounts, which tax rates are used? O A. Current tax rates B. Past years' tax rates O c. Enacted future tax rates O D. Estimated future tax rates