A company receives advance payments from customers that are immediately taxable butwill not be recognized for accounting purposes until the company fulfi lls its obligation.Th e company will most likely record:A . a deferred tax asset.B . a deferred tax liability.C . no deferred tax asset or liability.

Q: When a company records a deferred tax asset, it may need to also report a valuation allowance if it…

A: 1.FASB ASC 740-10-30-17 citation named as “Income Taxes–Overall–Initial Measurement Establishment of…

Q: Which of the following creates temporary difference between financial and taxable income? * Interest…

A: Temporary differences are differences between pretax book income and taxable income that will…

Q: A taxpayer received Form 1099-A with box 5 checked, indicating recourse debt. This informs the tax…

A: Form 1099-A includes the particulars relating to transfer of a property that is already disclosed.

Q: Taxable temporary difference occurs when tax is charged in the period: * O None of the above O…

A: Solution: Taxable temporary difference give result to creation of deferred tax liability, it means…

Q: In 2021, a company performed service for the customers. It will receive payments from the customers…

A: Deferred tax refers to the tax on the timing difference arrives due to difference in carrying amount…

Q: A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this…

A: As per IAS 12 Income taxes,  When carrying amount of liability as per books(financial reporting…

Q: Deferred income taxes result from: a. The fact that bond interest is deductible in the computa-tion…

A: Option C is correct.

Q: Which of the following statements is true?   A.) A company must use FIFO for both tax reporting and…

A: There are various methods available for inventory valuation.

Q: Which of the following temporary differences results in a deferred tax asset in the year the…

A:

Q: A reduction in the statutory tax rate would most likely benefi t the company’s:A . income statement…

A: A balance sheet is a financial statement that offers a framework for estimating the return rates and…

Q: For the purposes of the Goods and Services Tax (GST), when a registered business makes a GST-free…

A: For the purposes of the Goods and Services Tax (GST), when a registered business makes a GST-free…

Q: Which of the following statements is false?   A. A corporation must file a Federal income tax…

A: Corporation refers to the entity which is owned through shareholders, who elect the BOD (Board of…

Q: For each item listed below, indicate whether it involves a:                            a. permanent…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  The items should be matched as follows:   b  1…

Q: g. An increase in the Deferred Tax Liability account on the statement of financial position is…

A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question…

Q: For the purposes of the Goods and Services Tax (GST), when a registered business makes an input…

A: For the purposes of the Goods and Services Tax (GST), when a registered business makes an input…

Q: Companies are required to report which of the following known liabilities Unearned Revenue OPayroll…

A: Current Liabilities - Current Liabilities are the amount due to the company. But Company has not…

Q: Assuming it meets the conditions to net assets and liabilities, how will the company report deferred…

A: Under US GAAP, Crystal​ Critters should net off all the deferred tax assets and liabilities into one…

Q: A corporation that claims the dividends received deduction may completely or only partly avoid any…

A: A deduction reduces the tax expense.

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest…

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order…

Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: O The establishment…

A: Recognition of Tax Benefits in the loss year due to NOL carry back  Basically its a treatment of Tax…

Q: TRUE OR FALSE? 1st statement: MCIT will be imposed if the company's business operation resulted in…

A:

Q: Which of the following may not be an effect of VAT on the accounting records of a company?   i. The…

A: VAT refers to indirect tax imposed on the sale and purchase of goods and services.

Q: Listed below are items that are commonly accounted for differently for financial reporting purposes…

A: Financial accounting refers to the accounting which helps in keeping a logical as well as systematic…

Q: 1. Which of the following statements is incorrect regarding deferred taxes? a. Income tax payable…

A: Here asked for multi question as per guidelines we will solve for first question for you.  If you…

Q: Identify the following statement that is false.   a. If an employer is not required to withhold…

A: Withholding - Withholding is the portion of an employee's wages that is not included in his or her…

Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: OThe establishment of…

A: Deferred tax asset: When book profits of entity is less than taxable profits it results in deferred…

Q: Accounting profit is O A. The The profit or loss is for a period determined before deducting in…

A: There are two types of income. One is accounting income, and the other is taxable income. Tax…

Q: A deferred tax account is classified on the balance sheet as: A net noncurrent amount A net current…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: hich of the following may not be an effect of VAT on the accounting records of a company?   The…

A: VAT is the value added tax which is applied to all sales of services and imports, as well as to the…

Q: An entity computed its pre-tax income in its GAAP compliant books at P2,450,000 while its income per…

A: Deferred tax liability is the tax on temporary taxable difference and temporary difference is the…

Q: Statement 1: Taxable temporary differences are temporary differences that will result in taxable…

A: Tax is referred to as compulsory charge of finance or other kind of the tax imposed on taxpayer…

Q: Which of the following is not a disclosure related to income taxes based on IAS 12? * O The amount…

A: Answer: IAS 12- Income taxes. The disclosure related to income taxes is mentioned as : taxes…

Q: If tax laws allow a company to postpone paying taxes on activities reported in the current period’s…

A: Deferred Tax Liability: Deferred Tax Liability can be created upon occurrence of difference…

Q: A temporary difference which would result in a deferred tax liability is a) installment sale…

A: Definition: Deferred tax liability:- It is the liability of tax that a business has yet not paid in…

Q: When accounting standards require recognition of an expense that is not permitted undertax laws, the…

A: Temporary differences incur when there is a difference between the tax base and the carrying amount…

Q: 7. Which of the following creates a temporary difference between financial income and taxable…

A: Solution 7: Accelerated cost recovery on plant and equipment creates a temporary difference between…

Q: Coronado Corporation has temporary differences at December 31, 2020, that result in the following…

A: Total Deferred Tax Asset = $63,800 + $24,900                                        = $88,700 Total…

Q: Expenditures currently deducted in the tax return but not included with expenses in the income…

A: Solution: Expenditures  currently deducted in the tax return but not included with expenses in…

Q: When certain expenditures result in tax credits that directly reduce taxes, the companywill most…

A: Tax credits directly reduces taxes and these are permanent in nature. Hence, there is no deferred…

Q: explain how deferred tax liabilities and assets are created and the factors that determine howa…

A: Deferred Tax Liability or Deferred Tax Asset is an integral component of the financial statements.…

Q: An unused tax loss will arise when:   a. Expenses deductible for tax purposes are less than the…

A: Taxable income is the one upon which a tax percentage is charged as per the tax bracket to be paid…

Q: An entity computed its pre-tax income in its GAAP compliant books at P2,450,000 while its income per…

A: Step 1 Deferred tax liability is the tax on temporary taxable difference and temporary difference is…

Q: Which of the following causes a temporary difference between taxable and pretax accounting income?…

A: Please find the answer to the above questions below:

Q: Which of the following statements is true regarding the calculation of a C corporation's taxable…

A: Here discuss about the treatment of taxable income for the C corporation and the details which are…

Q: When accounting standards require an asset to be expensed immediately but tax rulesrequire the item…

A: A deferred tax asset or DTA is recorded on the balance sheet of the company which results from…

Q: an auditor, you are tasked to audit the income tax liability of Evader Corp. which of the following…

A: the deferred tax is such tax that is payable in the future. entity pay there income tax on the…