Because income from fixed income assets is taxed at a higher income tax rate than capital gains and dividends from equities, there is no reason that one would have fixed income assets in a taxable account over a tax deferred account (True or false)

Q: What events create permanent differences between accounting income and taxable income? What effect…

A: Introduction: Accounting income is profit calculated using the accrual method of accounting.…

Q: temporary difference arises when an element of income is reported for tax purposes in the period:…

A: As per IFRS deferred  tax assets and liabilities  arises on temporary  differences which  can either…

Q: What is an ‘exempt income’ and how does it affect the calculation or recovery of carry‐forward tax…

A: Any earning that is not subject to taxation is referred to as exempt income. Exempt income laws and…

Q: Non-assessable income does not increase tax liability, but tax-free income increases tax liability-…

A: Non-Assessable Income-: Non-assessable non-exempt revenue is common or statutory revenue that is…

Q: It means income (in the broad sense) excluding income which is by statutory provisions or otherwise…

A: Exempted Income: When it comes to taxation, exempt incomes are incomes that are not taxable under…

Q: Analysts should treat deferred tax liabilities that are expected to reverse as:A . equity.B .…

A: Option (B)is correct.

Q: An item that is considered a nondeductible item in taxable income is recognizing estimated bad debts…

A: Non deductible item in taxable income is an item which will not be considered for deduction while…

Q: Where the carrying amount of an asset or liability is different from the tax base a ‘temporary…

A: Temporary difference is occurre in one period and shall be reverse in subsequent period for tax…

Q: The tax law requires that capital gains and losses be separated from other types of gains and…

A: Short-term capital lose are allowed to be setoff against both long-term gain and short-term…

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: What type of event would create a deferred tax asset and deferred tax liability?

A: Given: The difference in income tax from the currently payable tax.

Q: Deferred tax liability

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

Q: If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is…

A: If the increase in deferred tax asset is Higher than the increase in deferred tax liability, there…

Q: current and future tax consequences of transactions accounted for

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: If qualified dividends are part of taxable income how do you find the tax liability? Do you have to…

A: Step1: Dividend income is taxable but it is taxed in different ways depending on whether the…

Q: While earnings on assets held in a Tax Free Savings Account (TFSA) will not be taxed while the…

A: False

Q: It is the exploitation by the taxpayer of legally permissible alternative tax rates or methods of…

A: Tax is referred as the financial charges which is imposed by government on an individual’s income or…

Q: It is characterized by final taxes which are withheld or deducted at source. A. Capital gains…

A: The three schemes under the NIRC are Capital gains taxation ,Final income taxation, Regular income…

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

A: A deduction reduces the tax expense.

Q: Which of the following is NOT a reason why timing is significant in tax? Group of answer choices…

A: Tax: When any assesse is earned the income from any sources of income which are mentioned in the tax…

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: Which of the following may not form part of the regular itemized deductions from the gross income?…

A: Itemized Deduction In the taxation law either standard deduction / itemized deduction which can be…

Q: TRUE OR FALSE? If the carrying amount of a liability is higher than the tax base, the difference is…

A: The given statement is True...If the carrying amount of a liability is higher than the tax base, the…

Q: In relation to accounting for income taxes, which one of the following statements is correct? a.…

A: Solution: "Tax expense is the sum of current tax expense plus deferred tax expense" this statements…

Q: If the carrying amount of an asset is higher than the tax base, the difference will result in…

A:

Q: Tax-deferred income is never taxed. O True O False

A: Tax is the amount that all the persons in a nation has to pay to the government on the income…

Q: Explain the tax phrase “exclusion from gross income.

A: Tax is a compulsory payment to the revenue authorities of a government of a country. Taxes are used…

Q: Explain why permanent differences have no deferred tax consequences.

A: A permanent difference is a business transaction that is reported differently for financial and tax…

Q: Why is the income tax payable not the same as income tax expense

A:

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

A: The percentage of tax on the difference in the amount of accounting and taxable income is termed…

Q: Taxable income represents the amount of tax required to be paid to the BIR.    True or False   You…

A: Notes: “Since you have asked multiple question, we will solve the first question for you. If you…

Q: What is the effect of deferred tax asset and deferred tax liability on the current year’s income tax…

A: Deferred tax assets and deferred tax liability arises because of the timing differences of the…

Q: In general, accrual basis taxpayers cannot take deductions for tax purposes until economic…

A: Accrual basis of accounting requires an individual or other entity to record the revenues and…

Q: ‘Income tax shall be paid on taxable income times tax rate.  It makes sense to pay income tax for…

A: The tax is charged on the taxable income as per the principles of the regulation authorities and any…

Q: Explain four main reasons expenses may not be deductible for income tax/corporation tax purposes.…

A: The reasons for expenses may not be deductible from income tax or corporation tax purposes are…

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: nonmonetary?

A: Nonmonetary items are the items that are subject to change in value over a period of time. These…

Q: The "income tax benefit" account reduces the current tax expense for the year and is a deduction…

A: Income tax: It implies to a financial levy that is imposed or charged on the taxable income of the…

Q: (1)Tax free income & tax credit income are same in income tax computation-Discuss with your own…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: According to PAS 12, this do not give rise to deferred tax asset or liability because they have no…

A: PAS 12 provides provisions relating to Accounting for Income taxes.

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: If the current tax expense is greater than the total income tax expense during the period, there…

A: Total income tax expense is the expense which are payable by the taxpayer which has not been…

Q: Why is the income tax payable not the same as income tax expense

A:

Q: Explain two main reasons why expenses may not be deductible for income  tax/corporation tax purposes

A: Deductible expenses: These include all the expenses that are allowed to be deducted from the gross…

Q: True or False

A: Long-term capital gains (LTCG): The gain an individual or an entity gets by selling the investment…

Q: Deferred tax asset and deferred tax liability are based on future tax rates while current tax asset…

A: The concept of Deferred Tax arises due to the timing difference between income as per the accounting…