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. Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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. (a) To determine the taxable income and income taxes payable for the year 2017.

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Answer 1

Question

Chapter 19, Problem 4E

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.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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.

(a)

To determine the taxable income and income taxes payable for the year 2017.

To determine

(b)

To determine the amount of income tax expense and record the same in the journal entry.

To determine

(c)

To determine the net income for the year 2017.

To determine

(d)

To determine the effective income tax rate for 2017.

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Answer 2

Question

Chapter 19, Problem 4E

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.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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.

(a)

To determine the taxable income and income taxes payable for the year 2017.

To determine

(b)

To determine the amount of income tax expense and record the same in the journal entry.

To determine

(c)

To determine the net income for the year 2017.

To determine

(d)

To determine the effective income tax rate for 2017.

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Answer 3

Question

Chapter 19, Problem 4E

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.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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.

(a)

To determine the taxable income and income taxes payable for the year 2017.

To determine

(b)

To determine the amount of income tax expense and record the same in the journal entry.

To determine

(c)

To determine the net income for the year 2017.

To determine

(d)

To determine the effective income tax rate for 2017.

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Answer 4

Question

Chapter 19, Problem 4E

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.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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.

(a)

To determine the taxable income and income taxes payable for the year 2017.

To determine

(b)

To determine the amount of income tax expense and record the same in the journal entry.

To determine

(c)

To determine the net income for the year 2017.

To determine

(d)

To determine the effective income tax rate for 2017.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 4E

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.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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.

(a)

To determine the taxable income and income taxes payable for the year 2017.

To determine

(b)

To determine the amount of income tax expense and record the same in the journal entry.

To determine

(c)

To determine the net income for the year 2017.

To determine

(d)

To determine the effective income tax rate for 2017.

Answer 6

Chapter 19, Problem 4E

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.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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.

(a)

To determine the taxable income and income taxes payable for the year 2017.

Answer 7

Chapter 19, Problem 4E

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.

Temporary differences: The difference between the actual taxable liability and the books of records maintained by the individual, firm or an entity is termed as temporary difference. The difference is created because of 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.

(a)

To determine the taxable income and income taxes payable for the year 2017.

Answer 8

To determine

(b)

To determine the amount of income tax expense and record the same in the journal entry.

Answer 9

To determine

(b)

To determine the amount of income tax expense and record the same in the journal entry.

Answer 10

To determine

(c)

To determine the net income for the year 2017.

Answer 11

To determine

(c)

To determine the net income for the year 2017.

Answer 12

To determine

(d)

To determine the effective income tax rate for 2017.

Answer 13

To determine

(d)

To determine the effective income tax rate for 2017.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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 amount of income tax expense and record the same in the journal entry.

(c)

To determine the net income for the year 2017.

(d)

To determine the effective income tax rate for 2017.

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Chapter 19 Solutions

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(b) To determine the amount of income tax expense and record the same in the journal entry.

(c) To determine the net income for the year 2017.

(d) To determine the effective income tax rate for 2017.

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Chapter 19 Solutions

(b)

To determine the amount of income tax expense and record the same in the journal entry.

(c)

To determine the net income for the year 2017.

(d)

To determine the effective income tax rate for 2017.