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Q: Which of the following is the most likely item to result in a deferred tax asset?
A: Unearned revenue is the most likely item to result in a deferred tax asset. Unearned revenue means…
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A:
Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…
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A: Capital Assets:All property that taxpayers own is capital asset, unless it falls into one of the…
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A: Difference between complete and recognized gains and losses Realized gains or losses for the…
Q: It is the amount attributed to an asset or liability for tax purposes. O Taxable amount O Tax base O…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: What is the logic behind allowing tax loss carrybacks/carryforwards?
A: Logic behind allowing tax loss carrybacks and carryforwards: A tax loss carryback permits a company…
Q: What is the net tax consequences of these dispositions?
A: The disposition of the assets means sales, exchange, or donation of the assets. The disposition of…
Q: Which of the following payment is a capital expenditure and not deductible under profits tax?
A: 1(a) Payment to a departing employee agree for not competing with the company. 1(b) 1,3 and 4…
Q: What is the Tax depreciation method?
A: Tax depreciation is the depreciation cost asserted on a government form by a citizen to represent…
Q: C) Adjusted gross income is decreased by any tax preference and adjustment items.
A: Minimum tax refers to the separate system that is required by some taxpayers for calculating the…
Q: d. either current or expected future tax laws
A: Taxes are the amount of dues or liabilities that need to be paid by the individual to the…
Q: tax
A:
Q: The value of property for tax purposes, usually a percentage of the fair market value is known as…
A: Appraisal value refers to that on a specific date, the specific property’s current market value is…
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: d. Assume that Ev Regular tax liability
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Sincome$ $from$ $business$ $subject$ $to$ $taxS
A: Income from business is the difference between total revenue (gross receipts) and total expenses.
Q: How does the disposition effect impact investor tax?
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Q: There is no taxable income until such income is recognized. Taxable income is recognized when the…
A: Taxable income is those income on which tax would be levied. In other words, the income on which…
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A: The given statement is True...If the carrying amount of a liability is higher than the tax base, the…
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A:
Q: deferred tax asset and a deferred tax liability
A: Deferred tax asset refers to the items that were shown as a result of extra payment of taxes.…
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: Define Deferred tax liability.
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: unts that are made available to a taxpayer without substantial restrictions are included in gross…
A: In income tax there are different types of doctrine for different types of recognition of income and…
Q: What is Tax Depreciation?
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
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: What is a deferred tax liability?
A: Deferred tax liability arises due to the difference in the amount of accounting income and taxable…
Q: Describe the procedure to incorporate the tax effects of gains (or losses) whenever an asset is…
A: Asset are considered to be capital items as they are held for more than a year and provide economic…
Q: 1 What is the tax consequence to Ernesto of the sale?
A: Tax consequences are the consequences which takes place only when a certain transaction takes place…
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: The key to reducing one's tax liability is to a. reduce taxable income b. reduce gross income
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Q: Income of on-line sellers are generally taxable. True or false?
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Q: Question: Explain the tax consequence of such awards
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Q: What is Deferred Tax Liability and why it might be created?
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Q: what are the differences between the following components of taxable income o…
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Q: Why do deferred tax assets arise? Explain your answer with suitable example.
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Q: Which of the following results to a deferred tax liability? When the carrying amount of an asset is…
A: Solution: "None of the choices" results to a deferred tax liability. this is because When the…
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- In the extractive industries, businesses may pay dividendsin excess of net income. What is the maximumpermissible? How can this practice be justified?Assume a M&M frictionless world EXCEPT that there are Corporate level taxes only. Under these assumptions, capital structure is irrelevant in that changing capital structure has no impact on the value of the firm. Group of answer choices True FalseIn which situation does the tax depreciation allow the firms to defer paying income taxes?
- Choose a,b,c,d,e for the following: Question 2- From a tax-paying investor's point of view, a stock repurchase: a. has the same tax effects as a cash dividend. b. is equivalent to a cash dividend. c. is more highly taxed than a cash dividend. d. No option is correct. e. is more desirable than a cash dividend.Which of the following statements is correct? a. As Modigliani and Miller made clear in their original work, capital structure does not matter in perfect capital markets. Thus, if capital structure does matter, then it must stem from a market imperfection. b. Because corporations pay taxes on their profits after interest payments are deducted, interest expenses increase the amount of corporate tax firms must pay. c. To determine the loss due the leverage for the value of the firm, we must compute the present value of the stream of future interest tax shields the firm will receive minus the stream of future dividends. d. By increasing the amount paid to debt holders through interest payments, the amount of the pre-tax cash flows that must be paid as taxes increases. e. In general, the gain to lenders from the tax deductibility of interest payments is referred to as the interest tax benefit.Which of the following might discourage covered interest arbitrage even if interest rate parity does not exist? A. transaction costs. B. political risk. C. differential tax laws. D. all of the above. E. none of the above.
- Which of the following statements is correct? a. Companies may pay too high a price in a large open market repurchase if it takes too long to complete. b. If a company uses the residual dividend model to determine its dividend payments, dividends payout will tend to increase whenever its profitable investment opportunities increase. c. An investor's capital gains from selling stock in a repurchase are always taxed at a higher rate than if the distribution were dividends. d. The tax code encourages companies to pay dividends rather than reinvest earnings. e. The stronger management thinks the clientele effect is, the more likely the firm is to adopt a strict version of the residual dividend model.What is the fundamental difference in a general stock redemption vs. a Liquidating Distribution? What are the income tax consequences?(a) – Explain the concept of Tax Deduction in WACC. Does this tax deduction make debt finance Cheaper Then Equity Finance? (b) – Compare Dividend Valuation Model with Capital Asset Pricing Model in the context of calculating cost of equity? Can use of these two methods result in differing values of business?
- Which of the following statements is incorrect? Earnings and profits are conceptually similar to retained earnings. A distribution from earnings and profits in excess of stockholder basis is a nontaxable return of capital. A distribution of appreciated property creates a gain to the corporation. Distributions paid in excess of earnings and profits are nontaxable to the extent of stockholder basis.How might capital rationing conflict with the goal of maximizing shareholders' wealth?When one uses the after-tax weighted average cost of capital (WACC) to value a levered firm, the interest tax shield is: Multiple Choice A) capitalized by the levered cost of equity. B) not accounted for by the use of the WACC. C) automatically considered because the after-tax cost of debt is included within the WACC formula. D) considered by deducting the interest payment from the cash flows.
