Temporary Difference Temporary difference refers to the difference of one income recognized by the tax rules and accounting rules of a company in different periods. Consequently, the difference between the amount of assets and liabilities reported in the financial reports and the amount of assets and liabilities as per the company’s tax records, is known as temporary difference. To prepare: journal to recognize A’s income tax expenses for 2018.

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Chapter 16, Problem 16.1P

1.

To determine

Temporary Difference

Temporary difference refers to the difference of one income recognized by the tax rules and accounting rules of a company in different periods. Consequently, the difference between the amount of assets and liabilities reported in the financial reports and the amount of assets and liabilities as per the company’s tax records, is known as temporary difference.

To prepare: journal to recognize A’s income tax expenses for 2018.

2.

To determine

To prepare: journal to recognize A’s income tax expenses for 2019.

3.

To determine

To prepare: journal to recognize A’s income tax expenses for 2020.

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