When assessing realizability of deferred tax assets, management must consider positive and negative evidence. All of the following would be considered positive evidence except ________. Group of answer choices taxable income in prior carryback year(s) if carryback is permitted under the tax law future reversals of existing taxable temporary differences an excess of appreciated asset value over the tax basis of the entity's net assets unsettled circumstances that could adversely affect future operations

When assessing realizability of deferred tax assets, management must consider positive and negative evidence. All of the following would be considered positive evidence except ________. Group of answer choices taxable income in prior carryback year(s) if carryback is permitted under the tax law future reversals of existing taxable temporary differences an excess of appreciated asset value over the tax basis of the entity's net assets unsettled circumstances that could adversely affect future operations

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter12: Tax Administration And Tax Planning

Section: Chapter Questions

Problem 12MCQ

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Similar questions

Which of the following is not a cause of a difference between pretax financial income and taxable income in a given period? a. operating loss carryforwards b. permanent differences c. applicable tax rates d. temporary differences
Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively 4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax low, resulting from temporary differences and operating loss carryforwards at the end of the current year 5. The change during the year in a corporations deferred tax liabilities and assets 6. The deferred tax consequences of future taxable amounts 7. The portion of o deferred tax asset for which it is more likely than not that a tax benefit will not be realized 8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively 9. The sum of income tax payable and deferred tax expense (or benefit) 10. The amount of income taxes paid or payable (or refundable) for the current year 11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year 12. The excess of taxable revenues over tax deductible expenses and exemptions for the year 13. Income tax expense divided by income before income taxes
Which of the following is an acceptable method of accounting under the tax law? The accrual method The hybrid method The cash method All of the above are acceptable None of the above
Will the existence of unused tax losses always lead to the recognition of a deferred tax assets? Explain your answer with suitable example. Provide An excellent explanation of under what condition unused tax losses can create deferred tax assets.
The purpose of an inter-period income tax allocation is to a. Allow reporting entities to fully utilize tax losses carried forward from a previous year. b. Allow reporting entities whose tax liabilities vary significantly from year to year to smooth payments to taxing agencies. c. Amortize the deferred tax liability shown on the balance sheet. d. Recognize an asset or liability for the tax consequences of temporary differences that exist at the balance sheet date.
TRUE OR FALSE?Under IFRS, deferred tax liability and deferred tax asset should be reported as noncurrent regardless of the reversal period.