Videos
Permanent difference: The constant mismatch between actual taxable income and the books of records maintained by an individual, a firm, or an entity is termed as permanent difference. The difference is caused either by including a transaction in the books of records and not in taxable income or including a transaction in taxable income but not in books of records due to business situations. These differences are not adjustable in the future and remain the same.
Temporary differences: The difference between actual taxable income and the books of records maintained by an individual, a firm, or an entity is termed as temporary difference. The difference is caused due to the tenure of transactions or actual performance of transactions, flow of funds into the business, or changes in the value of the asset or liability because of business situations. These differences are adjustable in future when the appropriate time for the transaction arises.
To determine the income tax payable for 2018
Given information:
Pretax financial income |
$550,000 |
Interest in municipal bonds |
$70,000 |
Fine for dumping hazardous waste |
$25,000 |
$60,000 |
|
Permissible depreciation as per income tax |
$45,000 |
Rate of income tax |
30% |
Want to see the full answer?
Check out a sample textbook solution
Chapter 19 Solutions
INTERMEDIATE ACCOUNTING 17E - UNC CHARL
- A product is sold for $25 per unit, and the variable cost per unit is $15. Fixed costs for the period are $200,000. A target profit of $50,000 is desired. How many units must be sold to achieve the target profit?arrow_forwardIn August, Evergreen Hospitality Group incurred $75,000 of food service costs and served 15,000 meals. In November, when 9,000 meals were served, the food service cost was $57,000. Based on this limited data, estimate the cost of food service: A. the variable cost per unit B. the fixed cost per montharrow_forwardsubject : General accountingarrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education