Listed below are items that are treated differently for accounting purposes than they are for tax purposes. Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities. 1. Investments accounted for by the equity method (ignore dividends received deduction). 2. Advance rental receipts. 3. Fine for polluting. 4. Estimated future warranty costs. 5. Excess of contributions over pension expense. 6. Expenses incurred in obtaining tax-exempt revenue. 7. Installment sales. 8. Excess tax depreciation over accounting depreciation. 9. Long-term construction contracts. 10. Premiums paid on life insurance of officers (company is the beneficiary).
Listed below are items that are treated differently for accounting purposes than they are for tax purposes. Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities. 1. Investments accounted for by the equity method (ignore dividends received deduction). 2. Advance rental receipts. 3. Fine for polluting. 4. Estimated future warranty costs. 5. Excess of contributions over pension expense. 6. Expenses incurred in obtaining tax-exempt revenue. 7. Installment sales. 8. Excess tax depreciation over accounting depreciation. 9. Long-term construction contracts. 10. Premiums paid on life insurance of officers (company is the beneficiary).
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 18DQ
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Question
Listed below are items that are treated differently for accounting purposes than they are for tax purposes. Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create
| 1. | Investments accounted for by the equity method (ignore dividends received deduction). | |||||
| 2. | Advance rental receipts. | |||||
| 3. | Fine for polluting. | |||||
| 4. | Estimated future warranty costs. | |||||
| 5. | Excess of contributions over pension expense. | |||||
| 6. | Expenses incurred in obtaining tax-exempt revenue. | |||||
| 7. | Installment sales. | |||||
| 8. | Excess tax |
|||||
| 9. | Long-term construction contracts. | |||||
| 10. | Premiums paid on life insurance of officers (company is the beneficiary). |
|
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