Which of the following items isreported net of related income taxes?a. Gain or loss from discontinued operations.b. Gain or loss from disposal of property, plant, andequipment.c. Interest on long-term debt.d. Gain or loss from early extinguishment of debt.

Q: cases would affect the current assets portion of the balance sheet

A: First option is wrong because when Current Tax Expense > Tax Payments, there is a current…

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

A: Itemized deductions: These are the Expenses which are deductible from the gross total income.  The…

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

A: Accelerated depreciation method:

Q: Which of the following creates temporary difference between financial and taxable income? * Interest…

A: Temporary differences are differences between pretax book income and taxable income that will…

Q: The carry forward periods for losses varies with the type of loss. Briefly describe the carry…

A: A tax loss carry forward is a provision that allows to the taxpayer to move a loss of tax to coming…

Q: Why is the after tax cost of debt rather than the before tax cost used to calculate the weighted…

A: Weighted average cost of capital :  WACC or Weighted average cost of capital, as the name suggests,…

Q: computing the cost of debt, a tax adjustment is required t arrive at after-tax cost of debt. Why is…

A: Cost of Equity: It is the rate of return the company pays to the investor for investing in the…

Q: TRUE OR FALSE? 1. Assets of the component held for sale shall be depreciated. 2. The income or loss…

A: The assets are treated as held for sale when the company intends to sell the assets in the near…

Q: benefits of a loss carryforward, assume that it is probable that the related benefits will be…

A: Hi student,  Since there are multiple subparts, we will answer only first three subparts.  Deferred…

Q: Which of the following can be deducted as interest expense? Interest on personal debt Interest on…

A: Interest on personal debt  imputed interest on capital interest on assessed tax delibquency…

Q: Deferred income taxes result from: a. The fact that bond interest is deductible in the computa-tion…

A: Option C is correct.

Q: Which of the following refers to the elements of Comprehensive Income?  a) Net Income, Interest…

A: Net income is the excess of sales over all the expenses including interest expense and income taxes.

Q: Which of the following is not an income for income tax purposes?

A: Assuming the question related to tax in Phillipines ---…

Q: It is a tax on the value of an article increased at each stage of its production or distribution.…

A: Excise tax is a type of indirect tax employed in case of specific goods (eg. fuel, tobacco,…

Q: Which of the following is not an expense excluded when calculating EBITDA? Depreciation expense,…

A: EBITDA is the earning available to compare the profitability of various companies, this eliminates…

Q: Which is a deductible tax expense? Surcharges and penalties

A: Deductible tax expenses In a business entity the deductible tax expenses which includes any ordinary…

Q: After tax cost of interest deals with the fact that interest is deductible for tax purposes.…

A: Interest expenses are the expenses which are related to borrowings raised by the company. The…

Q: Which of the following situations will result in a future deductible amount?  Carrying amount of…

A: Future taxable amount is the amount which increase tax liability in future and for that create…

Q: How are deferred taxes calculated? What determines if the company has a deferred asset or a deferred…

A: Deferred tax is a fictitious asset or liability that reflects company income taxation on a premise…

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: Assuming it meets the conditions to net assets and liabilities, how will the company report deferred…

A: Under US GAAP, Crystal​ Critters should net off all the deferred tax assets and liabilities into one…

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: Which of the following may be a current liability? Withheld Income Taxes Deposits Received from…

A: The liabilities are classified as current liabilities and long term liabilities.

Q: How can we determine the annual depreciation for tax purposes?

A: Depreciation Depreciation refers to a constant reduction in the cost of an asset. There are two ways…

Q: Why is the after-tax cost of debt rather than the before-tax cost used to calculate the WACC?

A: WACC refers to weighted average cost of capital. It is the rate which a firm pays to its security…

Q: Define after-tax cost of cost of debt

A: The amount that is raised by the company by issuing the bonds or borrowing from the financial…

Q: What is the difference between a future taxable amount and a future deductible amount? When is it…

A:

Q: Which of the following is used when computing for the accounting rate of return (ARR)? a. Income…

A: The accounting rate of return is the average net income an asset is expected to generate on the…

Q: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting…

A: The implication of the rules of conceptual frame work will helpful to create best standard in the…

Q: What are the two basic requirements applied to the measurement of current and deferred income taxes…

A:

Q: Which depreciation method is most common for financial reporting? Which depreciation method is most…

A:

Q: What are the benefits of calculating depreciation differently for financial reports and for tax…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: compute for the after tax cost of debt.

A: 12   Calculate cost of equity using CAPM model as shown below:     Cost of equity Risk free…

Q: Why deferred tax rate assets and liabilities are recorded in balance sheet?

A: The reasons for the recognition and reporting of deferred tax assets are as follows: The following…

Q: Net income after tax is: The difference of financial income and total deferred income tax expense.…

A: Net income is the amount of money earned by an entity after deducting its outlays from the revenues.…

Q: Describe the method of Accounting for Depreciation and Income Taxes?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

Q: What methods can be used to find the before-tax cost of debt? How is the before-tax cost of debt…

A: Debt is always considered after tax, because interest on debt is a tax deductible expense.

Q: How, and why, does the depreciation reported for tax purposes differ from that reported in the…

A: Depreciation is the amount to be written off periodically to charge the decline in value of a fixed…

Q: Which of the following has a different treatment for cash and accrual basis of tax accounting?…

A: Under cash basis accounting, the transactions are recorded when the income is actually received or…

Q: A net operating loss occurs when tax-deductible expenses exceed taxable revenues. Tax laws permit…

A: Net Operating Loss Carry forward:The net operating loss is considered as negative taxable income.…

Q: Describe when and how a valuation allowance is recorded for deferred tax assets.

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…