Recording Tax Loss & Accounting Loss with Deferred Taxes:Calculate:Accounting Loss: Revenue - ExpensesTax Loss: Accounting Loss - Taxable IncomeTemporary Differences: Accounting vs. Tax items reversing in futureDeferred Taxes:Asset: (Taxable Income Reduction in Future) * Tax RateLiability: (Taxable Income Increase in Future) * Tax RateRecord Entries:Debit "Accounting Loss," credit expense accounts Debit "Tax Loss," credit "Deferred Tax Asset"Debit "Tax Expense," credit "Deferred Tax Liability" Can you explanation with account treatment

Recording Tax Loss & Accounting Loss with Deferred Taxes:Calculate:Accounting Loss: Revenue - ExpensesTax Loss: Accounting Loss - Taxable IncomeTemporary Differences: Accounting vs. Tax items reversing in futureDeferred Taxes:Asset: (Taxable Income Reduction in Future) * Tax RateLiability: (Taxable Income Increase in Future) * Tax RateRecord Entries:Debit "Accounting Loss," credit expense accounts Debit "Tax Loss," credit "Deferred Tax Asset"Debit "Tax Expense," credit "Deferred Tax Liability" Can you explanation with account treatment

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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Carla Vista Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. \table[[,\table[[Pretax Income],[(Loss)]],Tax Rate],[Year,(Loss,17% ***please use the screenshot data ENTRY to answer, thanks!***
Novak Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year Income (Loss) Tax Rate 2018 20 % 2019 20 % 2020 25 % 2021 25 % $123,000 98,000 (105,000) 110,000 The tax rates listed were all enacted by the beginning of 2018.
Subject: acounting
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In T1 General Tax Form, Total Income is reported on Line??
A valuation allowance for deferred tax assets Select one: a. Is required when future deductible amounts are expected to be applied against future taxable income. b. Requires evidence that it is more likely than not that none of the deferred tax asset will be realized. c. Is a contra asset account shown on the tax return. d. Is likely to be recognized if a company expects losses in early future years.
1. Under IFRS companies are required to provide a reconciliation between actual tax expense and the applicable tax rate. The purpose(s) of this reconciliation include I. Making better prediction of future cash flow. II. Predicating future cash flows for operating loss carryforwards. III. Assessing the composition of the net deferred income tax liability. IV. Assessing quality of earnings. Select one: a.I, II, III and IV. b.I, III, and IV only. c.I, II and IV only. d.I and IV only. 2. Under IFRS deferred tax assets are recognized for I. Deductible temporary differences. II. Deductible permanent differences. III. Operating loss carryforwards. IV. Operating loss carrybacks Select one: a.I and III only. b.I and IV only. c.II and III only. d.I, II, and III. 3. In determining whether to adjust a deferred tax asset, a company should Select one: a.pass a recognition threshold, after assuming that it will be audited by taxing authorities. b.take an aggressive approach…
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
Marginal tax rates Using the tax rate schedule attached Perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $16,800; $59,500; $89,600; $151,000; $245,000; $451,200; $1,000,000 b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis).
Recognition of tax benefits in a loss year due to a loss carryforward requires A) the establishment of a deferred tax liability. B) only a note to the financial statements. OC) the establishment of an income tax receivable. OD) the establishment of a deferred tax asset.
A net operating loss (NOL) carryforward creates: A-a deferred tax liability that should be classified as current liability B- a deferred tax asset that represents future tax benefit that can offset future taxable income O A O B Drouinun
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