Which of the following is tax credit or tax deduction or none:   A reduction of the income subject to tax A reduction of the total amount a taxpayer owes to the government A reduction of individual income taxes based on last year’s taxes A reduction of corporate taxes based on last year’s profit

Q: Explain the difference between an individual and a corporation or society when filling taxes.

A: Individual Taxpayer: A taxpayer is someone who owes money to the federal, state, or municipal…

Q: Which of the following is correct

A: All capital gains are not capital assets. Taxpayers not remits tax to government. Exempt from income…

Q: Examples for the permanent differences between financial reporting and reporting for the IRS in…

A: Answer:- Financial reporting meaning:- The process for recording and communicating financial…

Q: e effect of financial distress and taxation on​ gearing?   A. Both constrain gearing   B. The…

A: Gearing in accounting means how much is the debt against the equity in the capital structure of the…

Q: Which of the following is a correct formula to compute for total income tax expense?      a. Current…

A: >There are various timing differences between pretax income and taxable income. >These timing…

Q: Difference between tax deduction and tax credit. Give example of each. Some tax credits are referred…

A: Tax: Governments levy taxes on residents to create revenue for projects that would strengthen the…

Q: Which of the following statements is (are) correct? (x)  Part of the administrative burden of a tax…

A: A mortgage is a contract between borrower and a lender that provides the lender the right to take…

Q: For any given year, your income tax payable can never exceed income tax expense. a) True b) False

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

Q: Which of the following is an adjustment that will generally result in lower tax liability for an…

A: A tax is a charge which is levied by the government on the taxable income of a taxpayer. A tax…

Q: Which of the following is not a goal of the tax law? a.Economic goals such as reduction in…

A: Solution: Following are the goal of tax law: 1. Economic goals such as reduction in unemployment. 2.…

Q: 25. Which of the following is a correct formula to compute for total income tax expense? *   a.…

A: >Current Income tax is the combination of:--Income tax payable, which is the current year tax,…

Q: This is a prerogative of escaping or diminishing a tax liability through availment of ways allowable…

A: To reduce tax liability, two methods are there. One is tax evasion and other is tax avoidance. Tax…

Q: Which of the following is not a disclosure required by PAS 12 Income Taxes? Group of answer choices…

A: PAS 12 Income taxes is an accounting standard which is meant and used for guidelines and policies…

Q: A corporation may alternate between S corporation and C corporation status each year depending on…

A: C corporation is standard or normal corporation whereas S corporation is one which chooses special…

Q: If the increase in deferred tax asset is ____ than the increase in deferred tax liability, there is…

A: If the increase in deferred tax asset is Higher than the increase in deferred tax liability, there…

Q: current and future tax consequences of transactions accounted for

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: ollowing types of expenses is deductible? Group of answer choices   A.Bribes & Illegal Kickbacks…

A:

Q: A tax structured so that people with the different incomes pay the same percentage of their income…

A: A tax structured so that people with the different incomes pay the same percentage of their income…

Q: Which of the following items of interest expense may be deducted from gross income? Interest…

A: Interest expense will be allowed as a deduction if such Expense is incurred in the ordinary course…

Q: A) Interest paid or accrued to purchase or carry tax-exempt investments is not deductible. B)…

A: Investment Income Under normal circumstances investment income can't be used for the tax deduction…

Q: Propose a tax measure in order for the government to eaarn addtional revenue with emphasis ont he…

A: Since you have asked two questions but we provide solution to one question only kindly resubmit…

Q: Which of the following differences between financial accounting and tax accounting ordinarily…

A: Solution:- A deferred tax liability is a listing on a company's balance sheet that records taxes…

Q: Tax laws, being imposition of burden, shall be strictly construed against: *         A person who…

A: The rules and regulations that govern how, when, and how much taxes must be paid to local, state,…

Q: Which one of the following represents the tax payable? a. Tax payable is the balance of the total…

A: Tax is the amount that is to be paid on the income by individuals, firms and entities to the…

Q: It is the sum of the amount of in deferred tax liability related to accounting income. a. Tax…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

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: sset.    a. TRUE   b. FALSE

A: Solution: True. This is because Income tax benefit will decrease the current ta eapense means tax…

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 of the following are reductions  from the federal tax owed dollar -for - dollar.    Select…

A: Federal Tax is Tax on Income to be paid by Individuals, Corporation on their income of a particular…

Q: a) Explain the difference between pretax financial income and taxable income.

A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…

Q: Allowable Business Investment Losses (ABIL) can be deductible from any source of income to the…

A: Allowable business investment losses is the loss which has been incurred by the taxpayer out from…

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: What is the statute of limitations for income tax returns

A: Given: The concept of a statute of limitations for the income tax returns.

Q: If a government wants to obtain the maximum tax revenue it should   A. use static tax analysis.   B.…

A: Answer: C) The government should strive to assess and increase tax rate to maximize the revenue. The…

Q: What is the effect of deferred tax asset and deferred tax liability on the current year’s income tax…

A: Deferred tax assets and deferred tax liability arises because of the timing differences of the…

Q: ‘Income tax shall be paid on taxable income times tax rate.  It makes sense to pay income tax for…

A: The tax is charged on the taxable income as per the principles of the regulation authorities and any…

Q: the process of reducing the allowable deduction of interest expense by a certain percentage is…

A: the process of reducing the allowable deduction of interest expense by a certain percentage is…

Q: The "income tax benefit" account reduces the current tax expense for the year and is a deduction…

A: Income tax: It implies to a financial levy that is imposed or charged on the taxable income of the…

Q: 25. Which of the following is a correct formula to compute for total income tax expense? a. Current…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Which is not a source of federal revenue? Employment taxes Estate and gift taxes Taxes on…

A: Taxes are the compulsory payment made by the assessee to the government. For example , income tax ,…

Q: Assuming, the taxpayer is a domestic corporation, how much is the regular corporate income tax?

A: Calculating the taxable income of a Domestic tax payer                 Particulars Amount…

Q: If the current tax expense is greater than the total income tax expense during the period, there…

A: Total income tax expense is the expense which are payable by the taxpayer which has not been…

Q: Which of the following are true about Deferred Tax Liabilities? (check all that apply) In the…

A: Deferred tax liabilities and deferred tax assets arise when there are timing differences between…

Q: nd or

A: What Is a Tax Refund? Tax refunds usually call for a celebration. But in reality, they often mean…

Q: How does the Income received from tax free government bonds effect the calculation of deferred…

A: Tax free government  bonds means those  bonds which  pays interest  which is tax free, that is not…

Q: 1. Which of the following statements is true? A. Payments which constitute bribes, kickbacks and…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Which of the following is a correct statement? O Tax avoidance includes failure to pay tax on…

A: Tax is the amount which the tax payer pays to the government when the income of an individual goes…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.