Using the straight-line method of depreciation for reporting purposes and accelerateddepreciation for tax purposes would most likely result in a:A . valuation allowance.B . deferred tax asset.C . temporary diff erence.

Q: Discuss the difference between the straight-line method of depreciation and the accelerated methods.…

A: The key difference between straight-line method and the accelerated method is that, under…

Q: A gain on the disposition of Section 1245 property is treated as ordinary income to the extent of:…

A: Section 1245 properties are defined by IRS includes any personal property whether tangible or…

Q: A consolidation adjustment will have a tax effect if: Select one:  A. It adjusts the carrying…

A: Consolidation  Consolidation is the process of combining the financial resources of two or more…

Q: (R) The balance sheet elimination for an intercompany profit in land involves the deduction of the…

A: The Balance sheet, also known as the statement of financial position, is one of the three primary…

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: Which of the following statements are true? Select one or more: a. MACRS must be used for book…

A: MACRS In the United States, MACRS (Modified Accelerated Cost Recovery System) is a form of…

Q: In accounting, which aspect pertains to the tax implications arising from compliance with…

A: Environmental regulations are regulations issued by the government in connection with climate…

Q: TRUE OR FALSE? 1. Assets of the component held for sale shall be depreciated. 2. The income or loss…

A: The assets are treated as held for sale when the company intends to sell the assets in the near…

Q: When assessing realizability of deferred tax assets, management must consider positive and negative…

A: The objective of the question is to identify which of the given options would not be considered as…

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: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: Property plant and machinery are the fixed assets of the company which helps in production process.…

Q: ts) Which principle has FASB used to determine the accounting method for recordin elopment costs? 4…

A: There are specific methods of accounting for different activities and there is specific method of…

Q: Present a mathematical solution in order to express that how depreciation can effect tax liability…

A: There are different types of Depreciation method. They are: 1) Straight Line Method 2) Declining…

Q: Describe the depreciation procedures used in income taxation

A: The question deals with the depreciation procedures used in income taxation.

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: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: A company's physical or tangible long-term assets having a life of at least one year are referred to…

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: 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: is the temporary differrence of depreciation between financial accounting and taxation puposes…

A: In accounting, a temporary difference is a difference between an asset or liability's carrying…

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: Select all that are true with respect to depreciation. Depreciation is a cash flow outflow at the…

A: Form 1040 Schedule 1 is used to report certain types of income that are not listed on the main 1040…

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

A:

Q: Which of the following items isreported net of related income taxes?a. Gain or loss from…

A:

Q: Which of the following indicates that a decision has precedential value for future cases?

A: Temporary book-tax differences arise when there is a difference between the amount of income or…

Q: The objective of the HRA is to______ a. provide a determination of asset control as to whether human…

A: general objectives of Human resource management -   - Attract and retain qualified people - to have…

Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: OThe establishment of…

A: Deferred tax asset: When book profits of entity is less than taxable profits it results in deferred…

Q: With respect to transaction and translation gains and losses:   a. transaction gains and losses are…

A: Transaction and translation gains and losses are incurred by an organization operating in…

Q: Depreciation expense is considered as allowable deduction Select one: True False

A: Depreciation expenditure is the amount depreciated for a specific period (e.g., quarter or year),…

Q: tax assets must be reduced by a valuation allowance if, based on the weight of the evidence, it is…

A: Assets - A resource having economic worth that a person, business, or nation possesses or controls…

Q: If the carrying amount of an asset is higher than the tax base, the difference will result in…

A:

Q: Given the frequently changing nature of depreciation and tax law,what must we use?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: Requirement Complete the following table by indicating: 1. The section of the income statement where…

A: Gain on sale of plant assets is a non operating because plant are used to manufacture and not used…

Q: the depreciation method that is allowable under the income tax act is referred to as straight- line,…

A: The depreciation method that is allowable under the income tax act is referred to as "capital cost…

Q: MACRS depreciation typically creates deferred tax liabilities early in the life of an asset. True or…

A: The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes…

Q: A valuation allowance for deferred tax assets   Select one: a. Is required when future deductible…

A: A valuation allowance is a counter-account to a deferred tax asset account that reflects the amount…

Q: Explain what is meant by an accelerated depreciationmethod. Are accelerated methods more widely used…

A: The term accelerated depreciation implies that in the early years of the existence of the asset,…

Q: Define tax depreciation methods

A: Tax: Tax can be defined as the compulsory fees charged by the government of the country or the…

Q: When an expenditure  is made and it is treated as an expense but should have been capitalized, the…

A: The expenses that are paid in advance are known as prepaid expenses.