temporary difference Interest earned on investments in tax-exempt government securities. Interest earned on deposits
temporary difference Interest earned on investments in tax-exempt government securities. Interest earned on deposits
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 8P
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Question
Classify the following items that may cause discrepancy between accounting profit and taxable income, into the following types of differences. Also, provide an explenation why that is their classification.
A. Non-deductible expenses
B. Non-taxable revenues
C. Deductible temporary difference
D. Taxable temporary difference
-
Interest earned on investments in tax-exempt government securities.
-
Interest earned on deposits with bank.
-
Excess of profit earned over the profit reported under the installment method for income tax purposes.
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