Complete the following statements by filling in the blanks. A. In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be ____________ pretax financial income. (less than / greater than). B. If a $76,400 balance in Deferred Tax Asset was computed by use of a 40% rate, the underlying cumulative temporary difference amounts to $_________ . C. Deferred taxes __________ recorded to account for permanent differences. (are / are not)
Complete the following statements by filling in the blanks.
A. In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be ____________ pretax financial income. (less than / greater than).
B. If a $76,400 balance in
C.
D. If a taxable temporary difference originates in 2020, it will cause taxable income for 2020 to be ______________ pretax financial income for 2020. (less than / greater than)
E. If total tax expense is $52,200 and deferred tax expense is $67,300, then the current portion of the expense computation is referred to as current tax ______________ of $_____________ . (expense / benefit)
F. If a corporation’s tax return shows taxable income of $98,000 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for “Income taxes payable” if the company has made estimated tax payments of $37,100 for Year 2? $_______________.
G. An increase in the
H. An income statement that reports current tax expense of $85,200 and deferred tax benefit of $23,400 will report total income tax expense of $___________.
I. A valuation account is needed whenever it is judged to be ____________ that a portion of a deferred tax asset ______________ realized. (more likely than not / equally likely ; will be / will not be)
J. If the tax return shows total taxes due for the period of $75,800 but the income statement shows total income tax expense of $54,900, the difference of $20,900 is referred to as deferred tax _____________. (expense / benefit)
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