Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

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Answer 1

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 18, Problem 23GI

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Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

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Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $7,000, direct labor of $3,400, and applied overhead of $2,890. Custom Cabinetry applies overhead at the rate of 85% of direct labor cost. During July, Job 120 is sold (on credit) for $26,000, Job 121 is started and completed, and Job 122 is started and still in process at the end of July. Custom Cabinetry incurs the following costs during July. Job 120 Direct materials used Direct labor used $ 2,300 3,400 Job 121 $ 7,100 4,700 Job 122 $ 2,600 3,700 1. Prepare journal entries for the following July transactions and events a through e. a. Direct materials used. b. Direct labor used. c. Overhead applied. d. Sale of Job 120. e. Cost of goods sold for Job 120. Hint. Job 120 has costs from June and July. 2. Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no jobs in Finished Goods Inventory at June…

Answer 2

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 18, Problem 23GI

To determine

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

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Answer 3

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 18, Problem 23GI

To determine

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

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Answer 4

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 18, Problem 23GI

To determine

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

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Answer 5

Chapter 18, Problem 23GI

To determine

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

Answer 6

Chapter 18, Problem 23GI

To determine

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

Answer 7

Chapter 18, Problem 23GI

To determine

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 18 - What source is used to determine income tax...Ch. 18 - Prob. 2GI Ch. 18 - Prob. 3GI Ch. 18 - Prob. 4GI Ch. 18 - Prob. 5GI Ch. 18 - Prob. 6GI Ch. 18 - What are the three characteristics of a liability,...Ch. 18 - Prob. 8GI Ch. 18 - When does a corporation establish a valuation...Ch. 18 - List the steps necessary to measure and record a...

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

Solution Summary: The author explains how the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

Explain the way for the accounting treatment of deferred tax asset varies under U.S. GAAP and IFRS.

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