Answered: Which of the following differences…

Which of the following differences would result in future taxable amounts? * a. Expenses and losses that are deductible after they are recognized in financial income. b. Reve

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 28P

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4. Which of the following differences would result in future taxable amounts? A. revenues or gains that are recognized in financial income but never included in taxable income. B. expenses or losses that are deductible before they are recognized in financial income. C. expenses or losses that are deductible after they are recognized in financial income. D. revenues and gains that are taxable before they are recognized in financial income. 5. The accounting recognition of the benefits for a tax loss carry forward in most situations should be reported as A. an item on the retained eamings statement, not income statement. B. a prior period adjustment in whichever year the benefit is realized. C. a deferred tax asset in the year in which the benefit is realized. D. a reduction of loss in the year of the loss. 6. Because Pinaasa Company uses different methods to depreciate equipment for financial statement and income tax purposes, Pinaasa has temporary differences that will reverse during…
1. Which of the following differences would result in future taxable amounts? a. Revenues or gains that are taxable before they are recognized in financial income. b. Expenses or losses that are deductible after they are recognized in financial income. c. Expenses or losses that are deductible before they are recognized in financial income. d. Revenues or gains that are recognized in financial income but are never included in taxable income. 2. If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings as a. research and development expense in the period(s) of construction. b. depreciation deducted as part of research and development costs. c. depreciation or immediate write-off depending on company policy. d. an expense at such time as productive research and development has been obtained from the facility. 3. How should research and development costs be accounted for, according…
Which of the following would not usually be treated as a reconciling item in taxable income and accounting income?
Which of the following is true? Non-deductible expense is deducted to financial income in computing taxable income. Deductible temporary differences are deducted to financial income in computing taxable income. Non-taxable income is added to financial income in computing taxable income. Taxable temporary differences are deducted to financial income in computing taxable income.
1. A temporary difference arises when an element of income is reported for tax purposes in the period: a. After it is reported in financial income and before it is reported in financial income. b. After that is reported in financial income. c. Before it is reported in financial income. d. It will have no effect on the taxable amounts.
Which of the following causes a temporary difference between taxable and pretax accounting income? A. Investment expenses incurred to generate tax-exempt income. B. MACRS used for depreciating equipment. C. The dividends received deduction. D. Life insurance proceeds received due to the death of an executive.
4
An unused tax loss will arise when: a. Expenses deductible for tax purposes are less than the taxable income b. Expenses deductible for tax purposes exceeds the taxable income. c. Expenses deductible for tax purposes are equal to the taxable income d. Expenses deductible for tax purposes do not exist.
What is the permanent difference between pretax accounting income and taxable income?
Classify the following items that may cause discrepancy between accounting profit and taxable income, into the following types of differences. Also, provide an explenation why that is their classification. A. Non-deductible expenses B. Non-taxable revenues C. Deductible temporary difference D. Taxable temporary difference Interest earned on investments in tax-exempt government securities. Interest earned on deposits with bank. Excess of profit earned over the profit reported under the installment method for income tax purposes.
(5) Which of the following statements is NOT correct regarding permanent differences? A. Permanent differences result from items that enter into pretax financial income but never into taxable income. B. Permanent differences result from items that enter into taxable income but never into pretax financial income. C. Permanent differences affect only the period in which they occur. D. Permanent differences result in the recognition of deferred tax.
5. How do you call a deductible temporary difference? a. Current tax asset. b. Deferred tax asset. c. Current tax liability. d. Deferred tax liability.