How does the Income received from tax free government bonds effect the calculation of deferred taxes? It leads to the creation of a Deferred tax Asset. O It leads to the creation of a Deferred tax liability. O Is a permanent difference which is disallowed. O Is a temporary difference and is deducted from taxable income.

Q: Which of the following is not a tax preference or adjustment item for the individual alternative…

A: Alternative minimum tax (AMT) is the compulsory minimum tax which an individual or corporate has to…

Q: It is a tax on a person's income, payments, profits arising from property, the practice of the…

A: The government imposes different types of taxes on people. Some taxes are in the form of direct…

Q: List examples of temporary differences that create: deferred tax assets. Deferred tax liability.

A: A deferred tax asset is a balance sheet item that results from an excess or early tax payment. A…

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

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Q: Income is taxable, unless specifically included in the IRS.  What are some examples of tax…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

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

A:

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: Which of the following statements is (are) correct? (x)  Part of the administrative burden of a tax…

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Q: This is a prerogative of escaping or diminishing a tax liability through availment of ways allowable…

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Q: What is the principle behind IRS tax free or tax deferred transaction

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Q: Briefly describe why the obligation to pay taxes for citizens who have taxable income is a form of…

A: What is Taxation?  Taxation is a not a word it means when an authority i.e respective government ,…

Q: The FASB requires a reconciliation between the effective tax rate and the federal government's…

A: Effective tax rate: The average rate of tax paid by individual or corporation on the income earned…

Q: Under the cash method of tax accounting, tax deductions are taken when: a, Expenditures are made…

A: Answer: Under the cash method of tax accounting, tax deductions are taken when expenditures are…

Q: Which of the following is tax credit or tax deduction or none:   A reduction of the income subject…

A:

Q: Which of the following taxes is not deductible as an itemized deduction? a.Sales tax in a state with…

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Q: A) Interest paid or accrued to purchase or carry tax-exempt investments is not deductible. B)…

A: Investment Income Under normal circumstances investment income can't be used for the tax deduction…

Q: Deferred tax liabilities should be treated as equity when:A . they are not expected to reverse.B .…

A: Deferred tax liability: Deferred tax liability is a tax that is measured or is outstanding for the…

Q: taxpayer must always include his or her state income tax refund in income. True or False

A: Income tax:-  Income tax  means whenever an assessee, in a financial year earns certain income which…

Q: Propose a tax measure in order for the government to eaarn addtional revenue with emphasis ont he…

A: Since you have asked two questions but we provide solution to one question only kindly resubmit…

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 differences between financial accounting and tax accounting ordinarily…

A: Solution:- A deferred tax liability is a listing on a company's balance sheet that records taxes…

Q: What are the distinctions between deferred tax assets and deferred tax liabilities?

A:

Q: How do you call a deductible temporary difference? a. Current tax asset. b. Deferred tax asset.…

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Q: How is a deferred tax asset and a deferred tax liability established?

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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: The deferred tax expense is the Select one: a. decrease in balance of deferred tax asset minus…

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Q: Which of the following statements is true? Deductions are amounts allowed by the NIRC to be deducted…

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Q: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…

A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…

Q: a) Explain the difference between pretax financial income and taxable income.

A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…

Q: What Is A Deferred Tax Liability And What Is Its Purpose?

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

Q: Withholding is: b. A method by which the government collect taxes at the time of its A method of…

A: Taxes are the dues and liabilities which needs to be paid by the individual to the government on…

Q: An income tax is an example of which of the following? Derived tax revenue. Imposed nonexchange…

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Q: Because income from fixed income assets is taxed at a higher income tax rate than capital gains and…

A: Capital gain is the revenue generated from selling the assets either long term assets and short term…

Q: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…

A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…

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: An income tax is an example of which of the following?a. Derived tax revenue.b. Imposed nonexchange…

A: Answer:   Option a.

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

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

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Q: What is Deferred Tax Liability and why it might be created?

A: A deferred tax liability is the temporary differences which is created when there are differences…

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: nd or

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Q: Explain what the benifit is to having tax classified under statutory income. Aside from capital…

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

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Q: Which constitutes a taxable item of gross income? * Compensation for personal injuries Gain from…

A: Gross income: Gross income is the sum of all wages, salaries, profits, interest payments, rents, and…

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.