Which of the following is an example of a temporary difference which would result in a deferred tax asset?     a. Rent revenue collected in advance included in taxable income before it is included in accounting income b. Investment gains recognized earlier for accounting purposes than for tax purposes c. Use of straight-line method for accounting purposes and an accelerated rate for tax purposes d. Use of a longer depreciation period for accounting purposes than is used for tax purpose

Q: 1. A temporary difference that will result in future deductible amounts and, therefore, will usually…

A: Deferred tax liability is the item reported on the balance sheet which is a result of, the amount of…

Q: What is the depreciation method that is used for tax accounting purposes? How is it different than…

A: Accelerated depreciation method:

Q: 1. The amount of income taxes that relate to financial income subject to tax is reported on the…

A: Income Tax Expense comprises of Income-tax due as per income tax act and deferred tax component as…

Q: temporary difference arises when an element of income is reported for tax purposes in the period:…

A: As per IFRS deferred  tax assets and liabilities  arises on temporary  differences which  can either…

Q: Under which of the two accounting methods can you have instances of Deferred Tax Assets like Net…

A: The accounting method changes the rules and principles for recording the financial transaction.

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

A:

Q: The purpose of an inter-period income tax allocation is to    a. Allow reporting entities to fully…

A: Tax is the amount which an individual or business is liable to pay the government for business…

Q: Where the carrying amount of an asset or liability is different from the tax base a ‘temporary…

A: Temporary difference is occurre in one period and shall be reverse in subsequent period for tax…

Q: added to the financial income in computing for the taxable income?

A: First option is wrong because the unrealizable gains from trading securities is to be deducted from…

Q: Which of the following temporary differences results in a deferred tax asset in the year the…

A:

Q: Intra-period tax allocation is the allocation of the total income tax expense to the various…

A: The answer for the True or false question and relevant explanation are presented hereunder : In Tax…

Q: For each item listed below, indicate whether it involves a:                            a. permanent…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  The items should be matched as follows:   b  1…

Q: Which of the following circumstances does not give rise to a taxable temporary difference? O The…

A: A taxable temporary difference is a temporary difference that will lead to taxable amounts in the…

Q: he deferred tax consequence attributable to a deductible temporary difference and operating loss…

A: Solution: Deferred tax assets are created from those temporary differences which are future…

Q: A temporary difference which would result in a deferred tax liability is O excess of tax…

A: Introduction:- A deferred tax liability represents an obligation to pay taxes in the future.…

Q: (Identify Temporary or Permanent Differences) Listed below are items that are commonly accounted for…

A: Given information is: We have to identify for the given cases that in which option they pertains to:…

Q: What are the possible treatments for tax purposes of anet operating loss? What are the circumstances…

A: Net operating loss: When the level of income is less than the expenses for a given or a considered…

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest…

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order…

Q: Which of the following is an example of a temporary difference which would result in a deferred tax…

A: Solution: Rent revenue collected in advance included in taxable income before it is included in…

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: Listed below are items that are commonly accounted for differently for financial reporting purposes…

A: Permanent difference refers to those differences that ae caused by transactions and events, that…

Q: Which of the following may not form part of the regular itemized deductions from the gross income?…

A: Itemized Deduction In the taxation law either standard deduction / itemized deduction which can be…

Q: Recognition of tax benefits in the loss year due to a NOL carry back involves: OThe establishment of…

A: Deferred tax asset: When book profits of entity is less than taxable profits it results in deferred…

Q: Accounting profit is O A. The The profit or loss is for a period determined before deducting in…

A: There are two types of income. One is accounting income, and the other is taxable income. Tax…

Q: Deferred tax asset is the * . amount of income tax paid or payable for a year as determined by…

A: Deferred Tax Assets is the deferred tax consequence attributable to a deductible temporary…

Q: If the carrying amount of an asset is higher than the tax base, the difference will result in…

A:

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

A: Lets understand the basics. When there is taxable temporary difference between the book profit and…

Q: Which of the following is deducted from the financial income in computing for the taxable income?…

A: Donations received during the year is deducted from the financial income in computing for the…

Q: Which statement is incorrect regarding other comprehensive income?

A: Other comprehensive income is the income which the company has not yet earned but yes will be earned…

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: Statement 1: Taxable temporary differences are temporary differences that will result in taxable…

A: Tax is referred to as compulsory charge of finance or other kind of the tax imposed on taxpayer…

Q: Temporary differences result in future taxable or deductible amounts when the related asset or…

A: Permanent difference refers to those differences that are caused by transactions and events that…

Q: A valuation allowance for deferred tax assets   Select one: a. Is required when future deductible…

A: A valuation allowance is a counter-account to a deferred tax asset account that reflects the amount…

Q: The MACRS depreciation system is used for tax purposes, and the straight-line depreciation method is…

A: Deferred tax liability: Deferred tax liability arises when taxes paid under accounting records are…

Q: This is not a requisite for business expense to be deductible. Group of answer choices It must be…

A: Business expenses are those expenses incurred in a business organization by carrying on the normal…

Q: TRUE OR FALSE? 1. An excess tax depreciation will result to a deferred tax liability. 2. If the…

A: 1.An excess tax depreciation will result to a deferred tax liability-The given statement is False..…

Q: A temporary difference which would result in a deferred tax asset is A. Interest revenue on…

A: Introduction: Temporary differences are those differences arising between accounting and taxable…

Q: When certain expenditures result in tax credits that directly reduce taxes, the companywill most…

A: Tax credits directly reduces taxes and these are permanent in nature. Hence, there is no deferred…

Q: (Terminology, Relationships, Computations, Entries)InstructionsComplete the following statements by…

A: a:   If the taxable difference reverses in a year then the reversal may increase the taxable income…

Q: An unused tax loss will arise when:   a. Expenses deductible for tax purposes are less than the…

A: Taxable income is the one upon which a tax percentage is charged as per the tax bracket to be paid…

Q: 1 contiune Listed below are items that are commonly accounted for differently for financial…

A: Sometimes there is some difference in taxable income and accounting income. They will result into…

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: SOLUTION- DEFERRED TAX = IT REFERS TO EITHER A POSITIVE (ASSETS) OR NEGATIVE (LIABILITY) ENTRY ON…

Q: A net operating loss (NOL) carryforward creates: A-a deferred tax liability that should be…

A: Net operating loss is the excess amount of allowable deductions over the taxable income. When the…

Q: Which temporary difference would result in a deferred tax asset? a. Tax penalty or surcharge b.…

A: For an assets, the deferred tax asset arise when carrying amount of asset is lower than it's tax…

Q: All of the following would result to deferred tax asset, except a. Tax base for a machine is…

A: Answer: solution concept when taxable income is greater than accounting income it results in…

Q: Nonordinary items resulting in income or loss a. include unusual but not infrequent gains. b.…

A: a. include unusual but not infrequent gains.

Q: The FASB has defined several terms in regard to accounting for income taxes. Below are various code…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Which of the following is a temporary difference that normally is recognized for accounting purposes…

A: Temporary difference is the difference between when the revenue and expenses are  reported for…