ACC 318 Module Four Assignment

Topic: Accounting for Income TaxCan you please help explain tax bases for assets and liabilities under temporary difference (between accounting income and taxation income)? Would be so helpful if you could simplify what tax bases mean. I'm confused why, in the second page, the tax bases are considered 0 and I'm not sure what that means. Thanks!

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problem 28 ... Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable temporary difference, deductible temporary difference, deferred tax assets and deferred tax liability.

Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. Code Letter Term Code Letter Term A. Future deductible amount H Deferred tax consequences B Income tax payable (or refund) I Future taxable amount Operating loss carryback Deferred tax liability D Valuation allowance K Temporary difference E Deferred tax asset Income tax expense (or benefit) F Operating loss carryforward M Deferred tax expense (or benefit) Taxable income Required: Indicate which term belongs with each definition by choosing the correct term. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively X 3. Temporary…

20. A temporary difference arises when a revenue item is reported for tax purposes in a period   After it is reportedin financial income Before it is reportedin financial income No Yes No No Yes No Yes Yes

39a What is the income that will not be taken into account in the determination of the Financial Profit (Tax Base) and will not be added  to the profit?    a) Commercial Profit  B) Tax Exempt Earnings  NS) Taxable Earnings  D) Disallowable expenses  TO) Legally Accepted Expenses

O d. you cannot make changes to these fields QUESTION 7 How are the linked accounts for CPP different from the linked accounts for income tax - O a. CPP has a linked liability account only; income tax has an expense account only Ob. CPP has a linked expense account only; income tax has a liability account only Oc. CPP has both linked liability and expense accounts; income tax has a liability account only d. none of the above QUESTION 8 Creating an Accountant s Copy of your data allows your accountant to

1. Which statement is true about intraperiod tax allocation?   a. It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return b. It is required for the cumulative effect of accounting changes but not for prick period adjustments c. The purpose is to allocate income tax expense evenly over a number of accounting periods d. The purpose is to relate the income tax expense to the items which affect the amount of tax   2. Which temporary difference would result in a deferred tax asset? a. Tax penalty or surcharge b. Dividend received on share investment c. Excess tax depreciation over accounting depreciation d. Rent received in advance included in taxable income but deferred for financial accounting   3. Which temporary difference would result in a deferred tax liability? a. Interest revenue on municipal bonds b. Accrual of warranty expense c. Excess tax depreciation over…

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What events create permanent differences between accounting income and taxable income? What effect do these events have on the determination of income taxes payable and deferred income taxes? Identify three examples of permanent differences between accounting income and taxable income.

8.All of the following components are shown in the income statement net of applicable income taxes EXCEPT Group of answer choices A.cumulative effect of a change in accounting principle. B.extraordinary gain or loss. C.discontinued operations. D.gain or loss on sale of plant assets.

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QUESTION 13 The practice of including the income tax effect of a particular transaction with the transaction itself on the income statement is known as intraperiod tax allocation.     True     False

Please Introduction and explanation 1 and 2 question answers both subparts answer no plagiarism please and what is correct option and incorrect option why? Explanation please

#52 Which of the following disclosures is required for a change from LIFO to FIFO?   Question 52 options: a The cumulative effect on prior years, net of tax, in the current retained earnings statement b Restated prior year income statements c The justification for the change d All of these are required.

Classify the following items that may cause discrepancy between accounting profit and taxable income, into the following types of differences. Also, provide an explenation why that is their classification. A. Non-deductible expenses B. Non-taxable revenues C. Deductible temporary difference D. Taxable temporary difference Interest earned on investments in tax-exempt government securities. Interest earned on deposits with bank. Excess of profit earned over the profit reported under the installment method for income tax purposes.

Question 4Each of the following is determined according to IFRS exceptSelect one: a.taxable income. b.income for book purposes. c.income for financial reporting purposes. d.income before taxes. Question 5An assumption inherent in a company’s IFRS statement of financial position is that companies recover and settle the assets and liabilities atSelect one: a.the amount that is probable where “probable” means a level of likelihood of at least more than 50%. b.their reported amounts c.the present value of future cash flows. d.their net realizable value. Question 6Machinery was acquired at the beginning of the year. Depreciation recorded during the life of the machinery could result in                   Future                                Future          Taxable Amounts            Deductible AmountsSelect one: a.Yes No b.No Yes c.Yes Yes d.No No

When accounting standards require recognition of an expense that is not permitted undertax laws, the result is a:A . deferred tax liability.B . temporary diff erence.C . permanent diff erence.

Please help me to solve this problem

pls answer thanks.

In computing net business income for income tax purposes, which of the following statements is INCORRECT? Question 3Answer a. Income tax paid is not allowed as a business deduction. b. Depreciation is not allowed as a business deduction. c. Capital cost allowance is not allowed as a business deduction. d. An arbitrary reserve is not allowed as a business deduction.

Which of the following is not a from AGI deduction? A. The exclusion of an item of gross income B. Itemized deductions, if taken C. Standard deduction, if taken D. The qualified business income deduction

1. Statement 1: The gross income of an employee is computed by removing excluded income from his total compensation. Statement 2: The gross income from business or profession is computed by deducting cost of sales or revenue from total sales or revenue. Statement 3: Business or professional income exempted from income tax shall be included in computing gross income but will be allowed as deduction under the item "allowable deductions". a. All statements are true b. Only statement 1 is true C. Only statements 1 and 2 are true d. Only statement 2 is true e. Only statements 2 and 3 are true 2. Case 1: John made a total of P5,000 contributions for SSS, Philhealth, Pag-ibig, and union dues. The P5,000 contributions form part of John's gross compensation. However, in computing her taxable compensation, such amount must be excluded. Case 2: John suddenly got sick and was hospitalized for 1 month. She received a certain amount of benefit from SSS. Her hospital bills were also reduced by her…

question 35 choose the correct answer from the choices

[Second Item] The following statements are correct, except: a. The amount of percentage tax is based on the gross receipts. b. The amount of gross receipts is derived by deducting the cost of services rendered from the service revenue. c. Receivables, although treated as income under the accrual concept, do not form part of gross receipts. d.Percentage tax is generally imposed on services rendered.

1. The amount of income taxes that relate to financial income subject to tax is reported on the income statement as A. long-term deferred income taxes (credit) C. income tax expense B. current deferred income taxes (debit) D. income tax payable 2. An item that would create a permanent difference in pretax financial and taxable income would be A. using accelerated depreciation for tax purposes & straight line depreciation for book purposes. B. using the percentage of completion method on long-term construction contracts. C. purchasing equipment previously leased with an operating lease in prior years. D. paying fines for violation of laws. 3. Which of the following is the most likely item to result in a deferred tax asset? A. using completed contract method of recognizing construction revenue tax purposes, but using percentage of completion method for financial reporting purposes. B. using accelerated depreciation for tax purposes but straight-line depreciation for accounting purposes.…