Should preference shares be disclosed as ‘equity’ or as ‘debt’?
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Q: Should preference shares be disclosed as ‘equity’ or as ‘debt’? Response Click or tap here to…
A: Hello, “Since you have asked multiple question, we will solve the first question for you. If you…
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a. Should
b. ) ‘Income tax shall be paid on taxable income times tax rate. It makes sense to pay income tax for current year, but we should not be asked to account for
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- Based solely on the definitions in the chapter, is the sales tax a proportional, regressive, or progressive tax? Explain, and state how the tax might be viewed differently.a) Should preference shares be disclosed as ‘equity’ or as ‘debt’? Response Click or tap here to enter text. b) ‘Income tax shall be paid on taxable income times tax rate. It makes sense to pay income tax for current year,but we should not be asked to account for deferred tax assets and liabilities’. Do you agree with this statement? Discuss your arguments. Response Click or tap here to enter text. c) The financial reports must provide a true and fair view. Discuss this term ‘true and fair view’ and give examples how a company can meet this requirement.What are interest received and dividends received in accounting (tax)? Also, please describe ordinary vs. qualified dividends and preferential rate for qualified dividends? (with some examples)
- Since the computation of corporate income tax is based on a certain percentage, as the case may be, income tax is also percentage tax. Group of answer choices True FalseIndicate whether the following statements are true or false. If the statementis false, explain why.d. The Tax Code encourages companies to pay a large percentage of theirnet income in the form of dividends.Which of the following is not a disclosure required by PAS 12 Income Taxes? Group of answer choices Details of deferred tax assets Any adjustments of taxes of prior periods Tax consequences of future dividend payments Disclosure on the face of the statement of financial position about current tax assets, current tax liabilities, deferred tax assets, and deferred tax liabilities
- Which of the following is CORRECT? Select one: a. When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation. b. When calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation. c. Because of tax effects, an increase in the risk-free rate will have a greater effect on the after-tax cost of common stock as measured by the CAPM. d. Higher flotation costs reduce investors' expected returns, and that leads to a reduction in a company's WACC. e. All of the above are correct. Which of the following is CORRECT? Select one: a. If the NPV of a project is negative, the IRR for the project must also be negative. b. A project's MIRR can never exceed its IRR. c. If a project with normal cash flows has an IRR less than WACC, the project must have a positive NPV. d. If Project 1's IRR exceeds Project 2's IRR, then 1 must…analyze disclosures relating to deferred tax items and the eff ective tax rate reconciliation,and explain how information included in these disclosures aff ects a company’s fi nancialstatements and fi nancial ratios;Which of the following statements is true regarding minimum corporate income tax?
- Which of the following are correct statements concerning corporate dividends? a. Dividends are legal liability of a corporation to its shareholders b. Dividends paid by a corporation to another corporation receive preferential tax treatment (minimum 70% exclusion from taxable income) c. Dividends are generally paid to the shareholders before the payment of interests to the bondholders d. Dividends payments are considered tax deductible expense while interest payments are notI- Interest paid on preferred stock is deductible from gross income of the paying corporation.II- A capital expenditure usually benefits more than one accounting period and is deductible from gross income in the year it is paid or incurred.* True; true False; true true; false false; false Which of the following is true?* Payments which constitute bribes, kickbacks and others of similar nature which are necessary to realized profits are allowed as deductions from gross income. The taxes which are deductible from gross income include the taxes, interest and penalties incident to tax delinquency. Deductions are amounts allowed by the Tax Code to be deducted from gross income arrive at the income tax liability of a taxpayer. Losses from wagering transactions shall be allowed only up the extent of the gains from such transactions. Which statement is correct?* The compensation income of managerial or supervisory employees is subject to fringe benefit tax. The taxable fringe benefits…Listed below are items that are treated differently for accounting purposes than they are for tax purposes. Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities. 1. Investments accounted for by the equity method (ignore dividends received deduction). 2. Advance rental receipts. 3. Fine for polluting. 4. Estimated future warranty costs. 5. Excess…
