1. In computing the CURRENT tax asset or CURRENT tax liability, which tax rate is used? a. Current tax rate b. Future enacted tax rate c. Average tax rate d. Effective tax rate

Q: The purpose of schedule M-1 is to reconcile net income per tax return with net income per books

A: As per our guidelines we provide solution to one question only but you have asked four multiple…

Q: All of the following are reported on the income statement net of tax except DA other comprehensive…

A: The answer is as fallows

Q: Explain how a change in tax rates affects the measurement of deferred tax amounts.

A: Deferred Tax Asset Items on a company's balance sheet that may be used to reduce taxable income in…

Q: Various Income Taxes: Should all types of income be taxed at the same rate? First, relate the…

A: Taxable Income: It is a part of a person's gross income that should be taxed. It is also referred to…

Q: Which of the following statements best describes the process of tax planning? Oa. Tax planning is…

A: Given : a. Tax planning is the calculation of a taxpayer's marginal rate of tax.b. Tax planning is…

Q: Explain how does the company’s effective tax rate calculated.

A: Effective interest rate:   An effective interest rate is the real return on savings account or any…

Q: All of the following must be disclosed separately, except A. The aggregate amount of current and…

A: The effect on tax due to any differences in timing can be termed as deferred tax, which also means…

Q: Access the glossary (“Master Glossary”) to answer the following. a.    What is a deferred tax asset?…

A:

Q: Which of the following tax accounting methods least likely defers payment of taxes?     Spread Out…

A: Spready Out method: Under this method revenue is recognised over a period of time. Lets make an…

Q: Which of the following statements concerning IAS 12, Income Taxes, are correct? I. Accounting profit…

A: To solve the question, one should have knowledge of current tax, tax rates applicable for the…

Q: Use the Tax Rate Tables, Exhibit 18-3, to calculate the tax liability (in $) for the taxpayer.…

A: Up to $14,200 10% $14,201 to $54,200 $1,420 + 12% of the amount over $14,200 $54,201 to $86,350…

Q: ansaction below, determine the tax type whether it is subject to Basic Income Tax (BIT),  Final…

A: Withholding tax is the tax which is deducted by the person incurring expense. When salary is paid by…

Q: The marginal tax rate is equal to Question 11 options:the change in the tax payment divided by the…

A: Marginal tax is the tax which you pay on an additional amount of incomes. This marginal tax is very…

Q: 25. Which of the following is a correct formula to compute for total income tax expense? *   a.…

A: >Current Income tax is the combination of:--Income tax payable, which is the current year tax,…

Q: a) Determine the marginal tax rate applicable to each situation. b) Determine the average tax rate…

A: Given in the question: Taxable Income Next Year  $20,00,000.00 Additional Taxable…

Q: Which is a deductible tax expense? Surcharges and penalties

A: Deductible tax expenses In a business entity the deductible tax expenses which includes any ordinary…

Q: In computing the change in deferred tax accounts, which tax rates are used? O A. Current tax rates…

A: SOLUTION- DEFERRED TAX LIABILITY AS BEING THE AMOUNT OF INCOME TAX PAYABLE IN FUTURE PERIODS IN…

Q: Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Deferred tax liability

A: Correct Answer is :- C Deferred tax Liability.

Q: After tax cost of interest deals with the fact that interest is deductible for tax purposes.…

A: Interest expenses are the expenses which are related to borrowings raised by the company. The…

Q: Why is income the basis for tax? Explain concisely in 3-5 sentences.

A: Basis means anything that the govt uses to compute the tax.

Q: Identify the correct formula about Income from continuing operation. Net profit before tax - sales…

A: Income from Continuing operation is the Oprating profit is the profit before tax

Q: In computing the deferred tax asset or liability, w. tax rate is used? a. Current tax rate b.…

A: Deferred  tax asset or liability  arises  due to temporary differences

Q: Explain further the steps in determining the income tax. Use the space provided for your answer.…

A: Tax is a charge which is levied on the taxable income of a taxpayer. A taxpayer has to pay the tax…

Q: What are the two objectives of accounting for income taxes O Deferred Tax Assets Deferred Tax…

A: The answer is as fallows

Q: What is the tax base for each of the following taxes? Income Tax GST FBT

A: Taxes are the amount of dues that is being payable to the government on account of income earned,…

Q: Which of the following methods is not allowed for tax purposes if FIFO (first in first out) is used…

A: Under FIFO(First in, First Out) method, inventories purchased first are assumed to be sold first.…

Q: A deferred tax liability (or asset) is described as the tax effect of the temporary difference…

A: A deferred tax adjustment is prevalent where there is a temporary difference in the book value and…

Q: d. Prepare all journal entries relating to income tax. e. Compute the total income tax expense,…

A: Answer -  Part D -  Journal entries relating to income tax - An S.no Particulars Debit Credit 1…

Q: tequired A. Explain the difference between tax reliefs and tax credits

A: (a) In this question,I have explained the difference between tax credit and tax relief

Q: 0 How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?

A:

Q: describe the diff erences between accounting profi t and taxable income, and defi ne key…

A: The temporary difference between taxes as per accounting income and taxes asper tax regulation is…

Q: What is the amount of net deferred tax asset/(liability) at January 1, 20x8? What is the amount of…

A: Deferred tax assets: Deferred tax assets can be defined as the assets created because of the…

Q: Indicate the type of Deferred Tax account created by Prepaid Expenses and Accrued Revenues,…

A: The balance sheet includes the assets, liabilities and stockholders' equity of the company.

Q: Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: the process of reducing the allowable deduction of interest expense by a certain percentage is…

A: the process of reducing the allowable deduction of interest expense by a certain percentage is…

Q: 25. Which of the following is a correct formula to compute for total income tax expense? a. Current…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Why deferred tax rate assets and liabilities are recorded in balance sheet?

A: The reasons for the recognition and reporting of deferred tax assets are as follows: The following…

Q: Net income after tax is: The difference of financial income and total deferred income tax expense.…

A: Net income is the amount of money earned by an entity after deducting its outlays from the revenues.…

Q: Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: In this question the income tax calculated how was it found? what is the transactions? help please

A: As per the information given in the question, The taxable income is 153.000 TL

Q: The following needs to explain further the steps in determining the income tax. Jse the space…

A: SOLUTION-    TAX IS A COMPULSORY FINANCIAL CHARGE OR SOME OTHER TYPE OF LEVY IMPOSED ON A TAX PAYER…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.