TRUE OR FALSE? 1. An excess tax depreciation will result to a deferred tax liability. 2. If the carrying amount of an asset is higher than the tax base, the difference is a future taxable amount and therefore there us a deferred tax liability. 3. A permanent difference that is nondeductible will have no deferred tax consequence.

Q: Unrealized los

A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…

Q: When a company reports a deferred tax asset it means that the company will receive a tax benefit in…

A: Deferred tax asset is an item on a company's balance sheet that reduces its taxable income in the…

Q: Carry-forward tax losses create: a. A deductible temporary difference and therefore a deferred tax…

A: Tax loss carryovers refer to tax losses that a company incurs in a tax year that it can't use to…

Q: temporary difference that would result in a deferred tax liability is O Excess of tax depreciation…

A: A deferred tax liability represents an obligation to pay taxes in the future. Temporary…

Q: A valuation allowance would exist as a contra account to the deferred tax assets if it is:…

A: In the financial accounts of the company, taxes that are paid in advance but have not yet been paid…

Q: taxable income

A: Income tax is payable by every person that crosses the tax-exempted threshold. However, various…

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: Your tax basis in any asset or property you own – (a) can never be less than zero.…

A: A) Tax basis is the amount investment in Fixed assets. on this value the depreciation , gain or loss…

Q: Using the straight-line method of depreciation for reporting purposes and accelerateddepreciation…

A: To offset the amount of a deferred tax asset , valuation allowance is used.  A deferred tax asset is…

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: TRUE OR FALSE? Under IFRS, deferred tax liability and deferred tax asset should be reported as…

A: The given statement is True... Under IFRS, deferred tax liability and deferred tax asset should be…

Q: not use ai please

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Q: A company reduces a deferred tax asset by a valuation allowance if it is probable that it will not…

A: The process of figuring out an asset's, investment's, business's, or other financial instrument's…

Q: Which of the following differences between financial accounting and tax accounting ordinarily…

A: The concept of Deferred Tax arises, due to the timing difference between income as per the…

Q: d. either current or expected future tax laws

A: Taxes are the amount of dues or liabilities that need to be paid by the individual to the…

Q: A reduction in the statutory tax rate would most likely benefi t the company’s:A . income statement…

A: A balance sheet is a financial statement that offers a framework for estimating the return rates and…

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: 5) How should companies appropriately account for the tax benefit due to a loss carryforward? ( O…

A: When a company suffers net operating loss in the current year, it can set off this loss against the…

Q: If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is…

A: If the increase in deferred tax asset is Higher than the increase in deferred tax liability, there…

Q: All items of gross income, legitimate or not, are taxable unless exempted by law or treaty.…

A: c. Only statement 1 is true

Q: Which of the following statements regarding the accrual equivalent after-tax return is most likely…

A: Option a: This option is incorrect because, It depends on the tax rate. In some cases, it could be…

Q: Unrealized losses on investments create a deferred tax asset in the period they first arise. O…

A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…

Q: This type of difference will give rise to deferred tax liability. * Taxable temporary difference…

A: As per IAS 12 OF IFRS Or as per PAS 12 Their are two types of temporary differences that arise from…

Q: Which of the following situations will result in a future deductible amount?  Carrying amount of…

A: Future taxable amount is the amount which increase tax liability in future and for that create…

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: Rationale for nonrecognition includes which of the following? I. A refinement of the realization…

A: Non-recognition of an event and transaction in the current year depends on various circumstances…

Q: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

A: How do taxpayers determine whether they should deduct their itemized deductions or utilize the…

Q: In a regressive tax system, as taxable income increases, the effective tax rate decreases ◻ True…

A: The question is asking whether in a regressive tax system, the effective tax rate decreases as the…

Q: he deferred tax consequence attributable to a deductible temporary difference and operating loss…

A: Solution: Deferred tax assets are created from those temporary differences which are future…

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: The purpose of Sec. 1245 is to eliminate the advantage taxpayers would have if they were able to…

A: Sec. 1245 and Sec . 1231 are sections of  U.S. Internal Revenue Code.

Q: Depreciation is needed only for computing income taxes. True or false?

A:

Q: A) Interest paid or accrued to purchase or carry tax-exempt investments is not deductible. B)…

A: Investment Income Under normal circumstances investment income can't be used for the tax deduction…

Q: What is a valuation allowance for deferred tax assets?  Provide two reasons why the valuation…

A: An accounting concept known as a deferred tax asset (DTA) is used in financial reporting to indicate…