This year, Game Co. took advantage of market conditions to refund its outstanding debt. Game should report the excess of the carrying amount of the old debt over the amount paid to extinguish it as a(n) a. deferred credit to be amortized over life of new debt. b. part of continuing operations. c. prior period adjustment. d. extraordinary item, net of income taxes.

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Q: This year AB Company has each of the following items in its income statement.   Part A.   Gross…

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A: Particulars Amount ($) Sales Revenue 60,06,000 Less : Cost of goods sold 30,89,182 Gross…

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A: Impairment occurs when a business sells or gives up on assets because it no longer thinks it will…

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A:

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A: Answer: The currently maturing portion of long term debt should be classified as current liability…

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A:

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.