Explain deferred tax assets.

Q: Define Effective tax rate.

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Describe the types of temporary differences that cause deferred tax liabilities and determine the…

A: Deferred tax liabilities It is a type of liability that arises due to the difference between the tax…

Q: Differentiate the accounting measurement of current tax liability and current tax asset from…

A: Tax is the charges levied by the central and state government on the net income, sale or capital…

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

A: Taxation is defined as the tax liability to be paid to the government on the income for a particular…

Q: Under which of the two accounting methods can you have instances of Deferred Tax Assets like Net…

A: The accounting method changes the rules and principles for recording the financial transaction.

Q: current and deferred tax expense

A: Option A is correct because deferred tax expense is recognized if there is a change in the deferred…

Q: Define Deferred tax asset.

A: Items on a company's balance sheet that may be used to reduce taxable income in the future are…

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

A:

Q: Why do deferred taxes arise

A: The deferred taxes usually arise when there is balance of over or advance payment of taxes to an…

Q: What is the difference between recognition and realization of a deferred tax asset?

A: A deferred tax asset is a balance-sheet item that decreases a company's taxable income in the…

Q: Under what condition deferred tax assets can be offset against deferred tax liabilities?

A: DTA stands for Deferred tax asset and DTL stands for Deferred tax liability which is integral part…

Q: Briefly describe the tax depreciation system under MACRS.

A: MACRS is an abbreviation of the Modified Accelerated Cost Recovery System.  The present U.S. tax…

Q: HOW TO improve tax-planning effort

A: Tax planning is the examination of a financial condition or plan to make sure that all parts work…

Q: Requirements: Discuss final income tax using the names and amounts given.

A: Final income tax is the amount of tax which is charged on the income such as interest income which…

Q: Define intrapreriod tax allocation.

A: Income tax: Income tax refers to the direct tax levied on individual person or business and…

Q: How are deferred tax assets and deferred tax liabilitiesreported on the balance sheet?

A:

Q: Identify the deferred tax assets/liabilities that is reported in the balance sheet articulating the…

A: As the definition suggests, the deferred tax liability occurs when taxable income is smaller than…

Q: Explain intraperiod tax allocation.

A: Income tax allocation is an integral part of generally accepted accounting principles. Income tax…

Q: Explain the informational benefit from required disclosure of tax abatements provided by state and…

A: Statement 77 rules the tax abatement. Tax abatement is generally offered by the government as a…

Q: Describe the presentation of deferred income taxes in financial statements.

A: Deferred tax asset: The deferred tax asset is the excess, overpaid, or paid in advance expenses.…

Q: Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the…

A: Both deferred tax liabilities and assets should be recognized gross in the balance sheet unless the…

Q: How are deferred tax assets and deferred tax liabilities reported on the statement of financial…

A: Deferred tax accounts has to be reported on the balance sheet of a business. It must be classified…

Q: Describe Tax Depreciation Methods?

A: Depreciation is a non-cash expense for the company. The depreciation expenses is charged because the…

Q: Discuss how a deferred tax provision can arise under IAS 12, Income Taxes, and the available methods…

A: the above requirement are discussed below

Q: deferred tax asset and deferred tax liability

A: Deferred tax is the tax arises due to the differences between accounting income and taxable income.…

Q: describe the valuation allowance for deferred tax assets—when it is required and what impact it has…

A: Valuation Allowance: Deferred tax assets should be assessed on every balance sheet date. If it is…

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

A:

Q: Under what condition deferred tax assets can be offset against deferred tax liabilities

A: SOLUTION- DEFERRED TAX ASSETS- IT IS AN ITEM ON THE BALANCE SHEET THAT RESULT FROM OVER PAYMENT OR…

Q: Define Deferred tax liability.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Lists some common expense-related deferred tax liabilities.

A: Deferred Tax Liability: It refers to the obligation that is to be paid in the future time period.…

Q: This refers to the process of taxation to determine the amount of tax based on existing tax laws.

A: Answer: b. Imposition

Q: Briefly explain how tax loss carryback and carryforward procedureswork.

A: Loss carryback is a situation in which business is having operating loss in this year and it want to…

Q: Define tax depreciation methods

A: Tax: Tax can be defined as the compulsory fees charged by the government of the country or the…

Q: Define intraperiod tax allocation. Why is the process necessary?

A: Intra-period tax allocation:   It is the allocation of an organization’s total income tax expense…

Q: Define Deferred Tax Liabilities.

A: Definition:   Income tax expense: The expenses which are related to the taxable income of the…

Q: How to calculate the answer of Tax Allowable depreciation?

A: Depreciation is the deduction in the value of the asset which leads to deduction in the tax as it is…

Q: How are deferred tax assets classified as current or non-current on the balance sheet?

A: As per U.S. GAAP the companies that classifies its balance sheet, need to divide deferred taxes into…

Q: compare a company’s deferred tax items;

A: Taxable income: It is the portion of the income which is used to calculate income tax that is to be…

Q: current tax and deferred tax.

A: First option is wrong because deferred tax expense does not include current tax. Third option is…

Q: How are deferred tax assets and deferred tax liabilities classified and reported in the financial…

A: Deferred tax asset is the balance sheet item, which results from the advance or overpayment payment…

Q: Explain Residence and domicile for tax purposes

A: Tax is the liability that has to be paid by the individual and the corporation to the federal…

Q: Why do deferred tax assets arise? Explain your answer with suitable example.

A: Item on an organization's monetary record that might be utilized to diminish tax for later are…

Q: How, and why, does the depreciation reported for tax purposes differ from that reported in the…

A: Depreciation is the amount to be written off periodically to charge the decline in value of a fixed…

Q: Describe when and how a valuation allowance is recorded for deferred tax assets.

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…