Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same. Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises. (a) To determine whether the situation creates temporary or permanent difference.

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Answer 1

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Chapter 19, Problem 3CA

To determine

Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises.

(a)

To determine whether the situation creates temporary or permanent difference.

To determine

(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

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1: An employer in Cleveland, OH, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $5,000 and $12,000. During the current pay period, these employees earn $1,800 and $2,000, respectively. FUTA tax = $ 126.66 2: An employer in Nesconset, NY, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $6,900, $1,000, and $24,200. During the current pay period, these employees earn $2,400, $1,750, and $3,000, respectively. FUTA tax = $ 235.50 × 3: An employer in The U.S. Virgin Islands employs two individuals, whose taxable earnings to date (prior to the current pay period) are $8,500, and $3,400. During the current pay period, these employees earn $880 and $675, respectively. FUTA tax = $ 664.50 × 4: An employer in Cary, NC, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,900, $8,900, and $6,600. During the current pay period, these employees earn $940,…

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Answer 2

Question

Chapter 19, Problem 3CA

To determine

Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises.

(a)

To determine whether the situation creates temporary or permanent difference.

To determine

(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

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Answer 3

Question

Chapter 19, Problem 3CA

To determine

Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises.

(a)

To determine whether the situation creates temporary or permanent difference.

To determine

(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 3CA

To determine

Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises.

(a)

To determine whether the situation creates temporary or permanent difference.

To determine

(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

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Answer 5

Chapter 19, Problem 3CA

To determine

Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises.

(a)

To determine whether the situation creates temporary or permanent difference.

To determine

(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

Answer 6

Chapter 19, Problem 3CA

To determine

Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises.

(a)

To determine whether the situation creates temporary or permanent difference.

Answer 7

Chapter 19, Problem 3CA

To determine

Permanent difference: Constant mismatch between the actual taxable income and the books of records maintained by the individual, firm, or an entity is termed permanent difference. The difference is created either by including a transaction in the books of records and not in the taxable income, or including a transaction in taxable income but not in the books of record due to business situations. These differences are not adjustable; in future it remains the same.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm, or an entity is termed temporary difference. The difference is created 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 due to business situations. These differences are adjustable in future when the appropriate time for the transaction arises.

(a)

To determine whether the situation creates temporary or permanent difference.

Answer 8

To determine

(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

Answer 9

To determine

(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 19 - Prob. 1Q Ch. 19 - Prob. 2Q Ch. 19 - Prob. 3Q Ch. 19 - Prob. 4Q Ch. 19 - Prob. 7Q Ch. 19 - Prob. 11Q Ch. 19 - Prob. 12Q Ch. 19 - Prob. 13Q Ch. 19 - Prob. 15Q Ch. 19 - Prob. 16Q

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(b)

To determine the consequence of recording the deferred tax item in the balance sheet.

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(b) To determine the consequence of recording the deferred tax item in the balance sheet.

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(b)

To determine the consequence of recording the deferred tax item in the balance sheet.