What will happen to a company's tax bill if interest expense is deducted? Multiple choice question. The company's tax bill will increase. The company's tax bill will decrease. The company's tax bill will not be affected. The company's tax bill for the next year will be affected.
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What will happen to a company's tax bill if interest expense is deducted?
The company's tax bill will increase.
The company's tax bill will decrease.
The company's tax bill will not be affected.
The company's tax bill for the next year will be affected.
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- Why do most companies prefer to use an NOL Carryback instead of an NOL Carryforward when both options are allowed by tax law? (NI&60) O It allows them to reduce their income tax expense in the current year. O It allows them to reduce their future income tax expense. O It allows them to increase their income tax refund in the current year. It allows them to increase their future income tax refunds.When a company's interest payment Blank______, the company's tax bill Blank______. Multiple choice question. increases; increases stays the same; increases increases; decreases decreases; decreasesWhich of the following has the greatest effect of reducing tax payable through the acceleration of deductions? a. Writing off any bad debts before the end of the income year. b. Value trading stock at market selling value where the market selling value is higher than the cost or replacement price. c. Ensuring investments are positively geared. d. Value trading stock at market selling value where the market selling value is higher than thecost or replacement price.
- Which statement is NOT true about the structure of the Earned Income Tax Credit (EITC)? A. EITC payments decrease as earnings increase, but everyone qualifies for some amount. B. At a particular range of income, government reduces EITC payments based on a certain fixed percent of income earned. C. EITC pays a fixed amount at a range of income. D. Up to a threshold, EITC pays a certain fixed percent of wage earned.Which statement is TRUE? If next years' tax rate will go down, companies with more existing deferred tax liabilities than deferred tax assets will have lower income tax expense in the current year If next years' tax rate will go down, companies with more existing deferred tax assets than deferred tax liabilities will have lower income tax expense in the current year If a company does not recognize a deferred tax asset for their current year tax loss, they can never recognize or use this in the future If a company does recognize a deferred tax asset for their current year tax loss, they would only derecognize this in the future if the tax loss is offset with taxable profits. O None of the other optionsAs a company, to minimize the present worth of taxes paid to the federal government, use longest MACRS recovery period. true or false?
- What are FUTA and SUTA taxes? Is there any possible reduction in the FUTA tax rate? If so, what is the reduction, and how is this determined?A reduction in the statutory tax rate would most likely benefi t the company’s:A . income statement and balance sheet.B . income statement but not the balance sheet.C . balance sheet but not the income statement.Why do companies choose to accelerate depreciation on their tax return and not on their income statement? a. to avoid paying taxes b. to postpone paying taxes c. to match their GAAP financial statements
- Accounting for Tax Loss Carryforwards Tax Loss Carryforwards (TLCFs) are a tax accounting concept that allows businesses to offset future taxable income with previous years' net operating losses (NOLs). When a company incurs a net loss in a given tax year, it may carry that loss forward to offset future taxable income, reducing its tax liability. This mechanism provides businesses with a means to smooth out fluctuations in their taxable income and helps in optimizing tax positions. Key Points: Net Operating Loss (NOL): NOL occurs when a company's allowable deductions exceed its taxable income. This negative taxable income can be carried forward to offset future taxable income. Carryforward Period: The carryforward period for NOLs varies by jurisdiction but is typically limited to a certain number of years. Some jurisdictions allow indefinite carryforwards, while others have specific time constraints. Tax Planning Strategy: Companies strategically use TLCFs in tax…1) How can tax on Pfizer's income be negative? Does it mean Pfizer saved that much money or they received that much amount from government in Cash? 2) What is the effective rate of tax for Pfizer? Can it be negative? 3) Give us brief details of what sort of tax benefits and tax expenses impacted FY 2017's Provision/(benefit) for taxes on income?Which of the following would be a good question to ask before advising a client to move from a Schedule C to S corporation tax treatment? Review Later How does moving to S corp tax treatment impact the ability to pump tons of money into a tax-deferred retirement plan? What really are the net savings, after accounting for all the extra fees attached to operating an S corporation? Is this client likely to actually do the compliance stuff associated with operating an S corporation, or is the "extra red tape" possibly (read: probably) going to become a nightmare for the client?.
