Explanation Deferred Tax : Deferred tax is the tax on the income that is either earned but not recorded as per the tax laws of a country or the income not earned but taxed as per the tax laws of a country. Deferred Tax Asset: It is treated as a liability and occurs when taxable income, which is income eligible for the tax,laws of a country, is recorded more than the book income, which is the income recorded in the accounting books of firms. Net Deferred Tax: It is calculated and defined as the deferred tax without the valuation allowance. The net deferred tax is the total amount in the deferred tax account that is collectible by the firm after the deferred tax assets and liabilities have been settles. Temporary Difference: A temporary difference is the irregularity in recordation of a financial transaction that is caused due to a difference in the time of entry in the accounts of a firm and the tax base...

Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)

2nd Edition

ISBN: 9780134833118

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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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 autho…

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Chapter 17, Problem 17.8Q

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The conditions in which firms can detect net deferred tax assets in the balance sheets.

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Chapter 17, Problem 17.7Q

Chapter 17, Problem 17.9Q

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Chapter 17 Solutions

Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)

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...

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The conditions in which firms can detect net deferred tax assets in the balance sheets.

Solution Summary: The author explains that firms can detect net deferred tax assets in their balance sheets to stay protected if future tax benefits become unrealizable.

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The conditions in which firms can detect net deferred tax assets in the balance sheets.

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