The amount for tax contingency under IFRS. Given information: Income before tax is $245,000. Income tax rate is 35%. If tax benefits are $10,000 then probability of sustaining is 30%. If tax benefits are $8,000 then probability of sustaining is 15%. If tax benefits are $6,000 then probability of sustaining is 10%. If tax benefits are $2,000 then probability of sustaining is 45%. Taxes are reported using IFRS methods.

Question

Want to see the full answer?

Answer 1

Question

Chapter 17, Problem 17.25BE

To determine

To calculate: The amount for tax contingency under IFRS.

Given information:

Income before tax is $245,000.

Income tax rate is 35%.

If tax benefits are $10,000 then probability of sustaining is 30%.

If tax benefits are $8,000 then probability of sustaining is 15%.

If tax benefits are $6,000 then probability of sustaining is 10%.

If tax benefits are $2,000 then probability of sustaining is 45%.

Taxes are reported using IFRS methods.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the value of total assets?

Need help

Hii teacher please provide answer general accounting question

Answer 2

Question

Chapter 17, Problem 17.25BE

To determine

To calculate: The amount for tax contingency under IFRS.

Given information:

Income before tax is $245,000.

Income tax rate is 35%.

If tax benefits are $10,000 then probability of sustaining is 30%.

If tax benefits are $8,000 then probability of sustaining is 15%.

If tax benefits are $6,000 then probability of sustaining is 10%.

If tax benefits are $2,000 then probability of sustaining is 45%.

Taxes are reported using IFRS methods.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 17, Problem 17.25BE

To determine

To calculate: The amount for tax contingency under IFRS.

Given information:

Income before tax is $245,000.

Income tax rate is 35%.

If tax benefits are $10,000 then probability of sustaining is 30%.

If tax benefits are $8,000 then probability of sustaining is 15%.

If tax benefits are $6,000 then probability of sustaining is 10%.

If tax benefits are $2,000 then probability of sustaining is 45%.

Taxes are reported using IFRS methods.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 17, Problem 17.25BE

To determine

To calculate: The amount for tax contingency under IFRS.

Given information:

Income before tax is $245,000.

Income tax rate is 35%.

If tax benefits are $10,000 then probability of sustaining is 30%.

If tax benefits are $8,000 then probability of sustaining is 15%.

If tax benefits are $6,000 then probability of sustaining is 10%.

If tax benefits are $2,000 then probability of sustaining is 45%.

Taxes are reported using IFRS methods.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 17, Problem 17.25BE

To determine

To calculate: The amount for tax contingency under IFRS.

Given information:

Income before tax is $245,000.

Income tax rate is 35%.

If tax benefits are $10,000 then probability of sustaining is 30%.

If tax benefits are $8,000 then probability of sustaining is 15%.

If tax benefits are $6,000 then probability of sustaining is 10%.

If tax benefits are $2,000 then probability of sustaining is 45%.

Taxes are reported using IFRS methods.

Answer 6

Chapter 17, Problem 17.25BE

To determine

To calculate: The amount for tax contingency under IFRS.

Given information:

Income before tax is $245,000.

Income tax rate is 35%.

If tax benefits are $10,000 then probability of sustaining is 30%.

If tax benefits are $8,000 then probability of sustaining is 15%.

If tax benefits are $6,000 then probability of sustaining is 10%.

If tax benefits are $2,000 then probability of sustaining is 45%.

Taxes are reported using IFRS methods.

Answer 7

Chapter 17, Problem 17.25BE

To determine

To calculate: The amount for tax contingency under IFRS.

Given information:

Income before tax is $245,000.

Income tax rate is 35%.

If tax benefits are $10,000 then probability of sustaining is 30%.

If tax benefits are $8,000 then probability of sustaining is 15%.

If tax benefits are $6,000 then probability of sustaining is 10%.

If tax benefits are $2,000 then probability of sustaining is 45%.

Taxes are reported using IFRS methods.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 17 - Prob. 17.1Q Ch. 17 - When will income tax expense and income taxes...Ch. 17 - Will permanent differences cause the effective tax...Ch. 17 - When do permanent differences arise?Ch. 17 - How are deferred tax assets and deferred tax...Ch. 17 - Prob. 17.6Q Ch. 17 - Prob. 17.7Q Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - How does a firm determine the need for a valuation...

Solution Summary: The author explains how a contingency tax is calculated using IFRS. The company will realize the tax deductions on the entire amount as opposed to collecting income tax benefits.

Want to see the full answer?

Chapter 17 Solutions