Statement 1: Taxable temporary differences are temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of current periods when the carrying amount of the asset or liability is recovered or settled. Statement 2: Offsetting of current tax assets against current tax liabilities shall be allowed only if the enterprise has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. * O All statements are false. O Only Statement 1 is true. O Only Statement 2 is true. O All statements are true.
Statement 1: Taxable temporary differences are temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of current periods when the carrying amount of the asset or liability is recovered or settled. Statement 2: Offsetting of current tax assets against current tax liabilities shall be allowed only if the enterprise has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. * O All statements are false. O Only Statement 1 is true. O Only Statement 2 is true. O All statements are true.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 7MC
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Question
25
![Statement 1: Taxable temporary differences are temporary differences that will result in
taxable amounts in determining taxable profit (tax loss) of current periods when the carrying
amount of the asset or liability is recovered or settled.
Statement 2: Offsetting of current tax assets against current tax liabilities shall be allowed
only if the enterprise has a legally enforceable right to set off the recognized amounts and
intends to settle on a net basis, or to realize the asset and settle the liability simultaneously.
O All statements are false.
O Only Statement 1 is true.
O Only Statement 2 is true.
O All statements are true.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F810fe569-a19a-478e-9553-1fcf870deebe%2Fb9bbc318-fe8b-4dd8-ae45-9acd06564eda%2Fe4lofcc_processed.png&w=3840&q=75)
Transcribed Image Text:Statement 1: Taxable temporary differences are temporary differences that will result in
taxable amounts in determining taxable profit (tax loss) of current periods when the carrying
amount of the asset or liability is recovered or settled.
Statement 2: Offsetting of current tax assets against current tax liabilities shall be allowed
only if the enterprise has a legally enforceable right to set off the recognized amounts and
intends to settle on a net basis, or to realize the asset and settle the liability simultaneously.
O All statements are false.
O Only Statement 1 is true.
O Only Statement 2 is true.
O All statements are true.
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