With respect to transaction and translation gains and losses:   a. transaction gains and losses are taxable but have no immediate cash flow impact.   b. transaction gains and losses have immediate cash flow and tax consequences, translation gains and losses have neither.   c. transaction gains and losses have an immediate cash flow impact, but taxation is deferred until the related assets are sold.   d. transaction and translation gains are taxable, but only transaction losses are tax deductible

Q: Temporary differences result in future taxable or deductible amounts when the related asset or…

A: Temporary differences result from timing differences between the recognition of income and expenses…

Q: The tax rules for determining business income are identical to those used for determining property…

A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…

Q: Which of the following tax concept(s) allow for the deferral of gains on nonrecognition…

A: Non-recognition transactions, according to the Internal Revenue services are those transactions, on…

Q: Gains and losses derived from sale or exchange of ordinary assets are included in the computation of…

A: Ordinary assets are those assets or the properties used in the trade or business which is primarily…

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

A: In consolidated financial statements, when a parent company and its subsidiary engage in…

Q: Which of the following creates temporary difference between financial and taxable income? * Interest…

A: Temporary differences are differences between pretax book income and taxable income that will…

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: an item is excluded from income taxation, it would follow that the same is likewise exempt from…

A: Ans. In regard to tax laws various tax treatments are made while calculating tax liability.

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: at income be recognized when it is made available to the cash basis taxpayer even though there are…

A: The correct answer is  True    Explanation:  ruling is applicable only to the taxpayer who would…

Q: Which of the following is not an income for income tax purposes?

A: Assuming the question related to tax in Phillipines ---…

Q: No deductions shall be allowed where the transaction is between “related taxpayers” under Sec. 36(B)…

A: Solution Concept As per the provision of the Tax Code The interest expense in not allowed for…

Q: Exclusion from gross income refers to income received or earned but is not taxable as income because…

A: Gross income is the total income of an individual without deducting any deductions or exemptions. It…

Q: For tax purposes where interest expense on margin loan is deductible for investment purposes , can…

A: To determine the prorated deductibility of interest expense on a margin loan, you need to understand…

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: A net operating loss occurs when tax-deductible expenses exceed taxable revenues. Tax laws permit…

A: Definition:   Net Operating Loss Carryforward: The net operating loss is considered a negative…

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: Which is a deductible tax expense? Surcharges and penalties

A: Deductible tax expenses In a business entity the deductible tax expenses which includes any ordinary…

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: 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: 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: 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: 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: For tax purposes, one of the requirements to recognize income is: A) The transaction does not have…

A: For tax purposes, recognizing income typically involves the realization of income, which means the…

Q: A taxable income always results when a. none of the choices. b. revenues exceed the cost of goods…

A: Taxable income is the value at which the tax is calculated by the company.It is calculated by…

Q: Which of the following statements is correct? O a. A tax offset can result in a refund if it relates…

A: The tax means the amount that a taxpayer provides to the government. The government uses this amount…

Q: TRUE OR FALSE? If the carrying amount of a liability is higher than the tax base, the difference is…

A: The given statement is True...If the carrying amount of a liability is higher than the tax base, the…

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

A:

Q: Which of the following differences would result in future taxable amounts? * a. Expenses and losses…

A: If Expenses or losses that are deductible before they are recognized in financial income, it would…

Q: Operating loss carryforward occurs when an entity has a negative taxable income. Required: True or…

A:

Q: The income tax consequences of a business transaction depend on which entity engages in the…

A: Income tax is an indirect tax which is levied on the income earned by an individual, corporation or…

Q: It is legal for a company to use one method of depreciation for tax reporting purposes and a…

A: Tax authorities frequently permit depreciation to be taken in ways that are more expedited or…

Q: Which of the following differences would result in future taxable amounts? a. Revenues or gains…

A: Revenues or gains that are taxable after they are recognized in financial income. Should be results…

Q: A temporary difference which would result in a deferred tax liability is a) installment sale…

A: Definition: Deferred tax liability:- It is the liability of tax that a business has yet not paid in…

Q: There are four ways tax consequences may affect the after-tax net proceeds received from the sales…

A: Sale of asset happen when the firm sells all of its assets whether intangible or tangible. In the…

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.