This is not a requisite for business expense to be deductible. Group of answer choices It must be reasonable It must be ordinary and necessary It must be paid during the taxable year The withholding tax otherwise required have been deducted and remitted to the BIR

Q: e journal entry required to record the tax effect of the revaluation. a. None of answers given b.…

A: Revaluation has been the process of adjusting a fixed asset class book value to its own current…

Q: As ITA 3(b) indicates Taxable Capital Gains exceed Allowable Capital Losses, which of the following…

A: Solution:-ITA 3(b) - Capital gains tax occurs if the previous year's capital gains tax exceeds the…

Q: TRUE OR FALSE? 1st statement: Interest income must be included in the computation of gross income if…

A: Gross Income: The entire earnings a person obtains before taxes and other deductions are referred to…

Q: the income is derived solely and exclusively from emoluments, from which tax at source is deducted…

A: Tax at source refers to the system in which taxes are withheld or deducted by the payer of income…

Q: tax allocation

A: Correct Answer 1 :- D The purpose is to relate the income tax expense to the items which affect the…

Q: t is the change during the year in an entity's deferred tax liability and o O A. Current tax expense…

A: Solution: "Deferred tax expense" is the change during the year in an entity's deferred tax asset and…

Q: Which of the following "is not" a criteria that must be met to deduct business and/or investment…

A: When it comes to determining the deduction of expenses allowed to the taxpayer, there are various…

Q: when an act is performed in the production of the income expenditure attendant upon that act…

A: Section 11(a) of the Internal Revenue Code in the United States deals with the taxation of income…

Q: s) Which of the following statements is true about temporary book-tax differences? (N O They are…

A: Temporary book-tax differences refer to the differences that arise between the pretax book income…

Q: FUTA TAX MUST BE DEPOSITED WHEN THE CUMULATIVE QUARTERLY TAX LIABILITY EXCEEDS?

A: FUTA (Federal unemployment tax) Tax is required to be paid by an employer for the first $7000 wages…

Q: Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income. reported on…

A: M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the…

Q: Deferred income taxes result from: a. The fact that bond interest is deductible in the computa-tion…

A: Option C is correct.

Q: Which of the following is not true? A taxpayer must obtain approval or consent of the IRS to change…

A: A taxpayer is an individual or entity that is obligated to pay taxes to a governmental authority,…

Q: The entry to recognize that a portion of a deferred tax asset would more likely than not be not…

A: Income tax actual paid and income tax expenses some time differ because of deferred income…

Q: kable income and accounting inco epreciation expense terest expense

A: Taxable income refers to the money earned by an entity on which the government levied a mandatory…

Q: An item that is considered a nondeductible item in taxable income is recognizing estimated bad debts…

A: Non deductible item in taxable income is an item which will not be considered for deduction while…

Q: Provide two examples of expenditures that are typically not allowable for tax deductions but are…

A: Introduction: A tax-deductible cost is one that is "ordinary, essential, and reasonable" and…

Q: Statement 1: Life insurance premiums shall be reported as a deductible expense for financial…

A: Tax is the liability that person owes to the government.

Q: 1.The definition of gross income in the tax law is: A. All items specifically listed as income in…

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

Q: added to the financial income in computing for the taxable income?

A: First option is wrong because the unrealizable gains from trading securities is to be deducted from…

Q: Which statement is false? a) Deferred taxes are the product of temporary difference in the…

A: Taxes refers to the amount that is charged by the government to individuals and organizations on the…

Q: Under the cash method of tax accounting, tax deductions are taken when: a, Expenditures are made…

A: Answer: Under the cash method of tax accounting, tax deductions are taken when expenditures are…

Q: A. For some assets, straight-line depreciation is used for tax purposes while double-declining…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Which of the following statements is NOT correct? a. VAT incurred wholly for making taxable…

A: The Value Added Tax (VAT) is a consumption tax that is applied to the value added at each stage of…

Q: MC: Topic: Income Taxation Under this income taxation scheme, the full amount of tax is withheld by…

A: Taxes are the amounts due to be paid to government on account of income earned or on sale of goods…

Q: Financial Assets representing a contractual right to receive cash in the future. Financial Liability…

A: Financial asset, is an asset that gives contractual right to an entity, to receive cash or another…

Q: Question 18 of 30. Distributable net income (excluding tax-exempt ir Serves as the upper limit on…

A: Distributable Net Income The amount of a trust's income allocated to the beneficiaries is known as…

Q: Listed below are items that are commonly accounted for differently for financial reporting purposes…

A: The answer is stated below:

Q: Which is false? a. The estate tax is computed based on the net estate or taxable estate. b. The net…

A: The estate tax is computed after deducting the exemption value from the total value of the…

Q: Which of the following is false? (a) Under GAAP, deferred taxes are reported based on the…

A: Liabilities that may occur in the future depending on the outcome of the future event are termed as…

Q: All are true except:   a. OSD is a substitute for itemized deduction. b. The OSD relieves the…

A: A company's financial statements are a collection of summaries of its monetary performance,…

Q: Which of the following differences would result in future taxable amounts? a. Revenues or gains…

A: Revenues or gains that are taxable after they are recognized in financial income. Should be results…

Q: a temporary difference

A: Deferred tax is the amount of tax owe by or to the tax payer arises out of the temporary differences…

Q: Expenditures currently deducted in the tax return but not included with expenses in the income…

A: Solution: Expenditures  currently deducted in the tax return but not included with expenses in…

Q: Explain four main reasons expenses may not be deductible for income tax/corporation tax purposes.…

A: The reasons for expenses may not be deductible from income tax or corporation tax purposes are…

Q: Which of the following is true? Non-deductible expense is deducted to financial income in computing…

A: Solution Concept Deferred tax asset or deferred tax liabilities shall be recognized when there is…