Deferred tax asset : The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund. Deferred tax liability : Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account. (a) To determine the deferred tax as on 31 st December 2017.

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Answer 1

Question

Chapter 19, Problem 16E

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the deferred tax as on 31^st December 2017.

To determine

(b)

To determine the taxable income for the year 2017.

To determine

(c)

To determine and record journal entry for the income tax expenses for 2017.

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Answer 2

Question

Chapter 19, Problem 16E

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the deferred tax as on 31^st December 2017.

To determine

(b)

To determine the taxable income for the year 2017.

To determine

(c)

To determine and record journal entry for the income tax expenses for 2017.

Expert Solution & Answer

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Answer 3

Question

Chapter 19, Problem 16E

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the deferred tax as on 31^st December 2017.

To determine

(b)

To determine the taxable income for the year 2017.

To determine

(c)

To determine and record journal entry for the income tax expenses for 2017.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 16E

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the deferred tax as on 31^st December 2017.

To determine

(b)

To determine the taxable income for the year 2017.

To determine

(c)

To determine and record journal entry for the income tax expenses for 2017.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 16E

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the deferred tax as on 31^st December 2017.

To determine

(b)

To determine the taxable income for the year 2017.

To determine

(c)

To determine and record journal entry for the income tax expenses for 2017.

Answer 6

Chapter 19, Problem 16E

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the deferred tax as on 31^st December 2017.

Answer 7

Chapter 19, Problem 16E

To determine

Deferred tax asset: The process of paying over and above the required level of tax is termed as deferred tax asset. These taxes are calculated and paid on the future expected income. In case if the future expected inflow of cash reduces, then the company can claim the excess tax paid in the form of tax relief or refund.

Deferred tax liability: Some business activities may create dissimilarity in the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr.J is a car dealer who sold a car on installment. In actual the sale happened in the current year but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

(a)

To determine the deferred tax as on 31^st December 2017.

Answer 8

To determine

(b)

To determine the taxable income for the year 2017.

Answer 9

To determine

(b)

To determine the taxable income for the year 2017.

Answer 10

To determine

(c)

To determine and record journal entry for the income tax expenses for 2017.

Answer 11

To determine

(c)

To determine and record journal entry for the income tax expenses for 2017.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 19 - Prob. 1Q Ch. 19 - Prob. 2Q Ch. 19 - Prob. 3Q Ch. 19 - Prob. 4Q Ch. 19 - Prob. 5Q Ch. 19 - Prob. 6Q Ch. 19 - Prob. 7Q Ch. 19 - Prob. 8Q Ch. 19 - Prob. 9Q Ch. 19 - Prob. 10Q

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(b)

To determine the taxable income for the year 2017.

(c)

To determine and record journal entry for the income tax expenses for 2017.

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Chapter 19 Solutions

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(b) To determine the taxable income for the year 2017.

(c) To determine and record journal entry for the income tax expenses for 2017.

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Chapter 19 Solutions

(b)

To determine the taxable income for the year 2017.

(c)

To determine and record journal entry for the income tax expenses for 2017.