Which of the following items would not be depreciable in computing income taxes? a. A company’s corporate headquarter building b. Land on which a company’s factory sits c. A machine tool used for production d. A company’s office furniture.

Which of the following items would not be depreciable in computing income taxes? a. A company’s corporate headquarter building b. Land on which a company’s factory sits c. A machine tool used for production d. A company’s office furniture.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter16: Multistate Corporate Taxation

Section: Chapter Questions

Problem 36P

See similar textbooks

Related questions

Q: In which situation does the tax depreciation allow the firms to defer paying income taxes?

A: Deferment of income tax liability is also called as Deferred Tax Liability. It means tax liability…

Q: Itemized Deductions can be classified as: a. Expenses that are purely personal in nature or…

A: Deduction can be defined as claims which lower a person or organisation’s liability by lowering…

Q: List farming income of the business that will be included in the gross income for normal or income…

A: Gross income is a income from a business before any deduction and taxes paid to the government. In…

Q: A loss due to a discontinued operation should be reported on the income statement a. as an…

A: Introduction: An income statement is a summary of your company's profits and losses over a given…

Q: 2. Which of the following costs would most likely be a discretionary fixed cost? A. The rent of the…

A: The correct option is D that is, Advertising. Discretionary fixed costs are such costs which are…

Q: Compute for the tax due of the following individuals using the RA 10963 tax table. Show…

A: As per the RA 10963 tax table, the Tax rate structure for individuals having an only business income…

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: Why do many companies use one method to calculate depreciation for the income statement prepared for…

A: Companies use different methods for tax reporting and financial reporting because by using the…

Q: The faster an asset can be depreciated, according to IRS rules, the greater a company's after-tax…

A: Depreciation is a process in which, when a business buys or develops an asset, the tax treatment for…

Q: Which of the following statements is true? A.) A company must use FIFO for both tax reporting and…

A: There are various methods available for inventory valuation.

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: Property plant and machinery are the fixed assets of the company which helps in production process.…

Q: Give three examples of the taxeffect pertaining to the acquisition of new factory (manufacturing)…

A: Explain the meaning of income tax effect and provide three examples of the tax effect pertaining to…

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: What is an unrecognized tax benefit and how does it affect a company's current income tax expense?

A: The Meaning of Income Tax: FASB defines income tax as a tax on earnings. It is measured in terms of…

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: A company's physical or tangible long-term assets having a life of at least one year are referred to…

Q: Which of the following is not a fully taxable supply? A. A bus ride from home to school. B. The…

A: Taxable supply is that supply of goods and services which is taxable under Goods and Services tax…

Q: net income before tax that the company would disclose on an ement is: absorption-costing inc

A: Absorption costing is a cost accounting method to find out the cost of a product. It takes into…

Q: A company as a tax entity will___________. Select one: a. pay either companies tax or secondary tax…

A: Tax entity: A tax entity refers to a company, business, or a person who is responsible to pay tax to…

Q: Which of the following should be capitalized when a pieceof production equipment is acquired for a…

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: Which of the following is true? Exempt corporations can claim the corporate OSD against gross…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : MCIT…

Q: Difference between the tax treatment of the purchase of a capital asset, such as a machine vs the…

A: There are various types of expenses which is incurred by the businessman in order to conduct it…

Q: You are self-employed. Your business earns income during the period. You are subject to which of the…

A: Working for oneself rather than for an employer is referred to as self-employment. Self-employed…

Q: Which of the following is not a common difference between net business income on the books…

A: * As per Bartleby policy, if question are unrelated then answer first only. As per IRS , business…

Q: A domestic transportation contractor by land is engaged in the transport of passengers, goods and…

A: VAT is known as the value added tax It is a type of tax which falls under the category of indirect…

Q: question 6(a) Provide the costs incurred on the plant or machinery used for the purposeof the…

A: Every business requires set types of the assets so that their business can run its operations very…

Q: In computing the taxable gross income of a taxpayer engaged in business and/or profession, what is…

A: When taxable income from business and profession is calculated, the already determined net operating…

Q: Which of the following differences would result in future taxable amounts? a. Revenues or gains…

A: Revenues or gains that are taxable after they are recognized in financial income. Should be results…

Q: ages for cost of inve gal business mbling activities

A: Gross Income - It is the total income from all sources i.e. business or services, returns,…

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

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 tax due of the following individuals using the RA 10963 tax table. Show…

A: An individual having only a business income of P2,410,000 will fall under the following tax…

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: Purchase of Heavy equipment by the business was recorded as an expense on the income statement so…

A: Tax means the mandatory payment made by assesse to the government without expecting anything…

Q: Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell…

A: NOL IS NET OPERATING LOSS IT MEANS WHEN TOTAL EXPENSES EXCEEDS TOTAL INCOMES . NOL CAN BE CARRIED…

Q: How is a business activity distinguished from an investment activity? why is this distinction…

Q: For purposes of the accumulated earnings tax, earnings can be accumulated for reasonable needs of…

A: An accumulated earnings tax is the tax that is imposed by the government on companies that…

Q: Why company tax rate is always different from company accounting income?

A: There is no possible comparison between the corporate tax rate and accounting income directly. The…

Q: explain how deferred tax liabilities and assets are created and the factors that determine howa…

A: Deferred Tax Liability or Deferred Tax Asset is an integral component of the financial statements.…

Q: Which of the following statements is true regarding the calculation of a C corporation's taxable…

A: Here discuss about the treatment of taxable income for the C corporation and the details which are…

Q: When accounting standards require an asset to be expensed immediately but tax rulesrequire the item…

A: A deferred tax asset or DTA is recorded on the balance sheet of the company which results from…

Q: Compute for the tax due of the following individuals using the RA 10963 tax table. Show…

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: For the purpose of computing the taxable income and the income tax, it shall include all business…

A: Hi student Since there are multiple questions, we will answer only first question.

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Which component of current income is not disclosed on the income statement net of tax effects? a. gain on sale of discontinued component b. gain on disposal of milling machine c. gain from sale of discontinued segment d. loss from operations of discontinued component
The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally
Why do many companies use one method to calculate depreciation for the income statement prepared for external reporting and and another method for income tax purposes?
Which of the following statements is true? A.) A company must use FIFO for both tax reporting and financial statement reporting. B.) A company may use FIFO to valuate inventory and LIFO for financial statement reporting purposes. C.) LIFO must be used for financial reporting if it is used for tax purposes. D.) Application of LIFO for financial reporting purposes must follow the tax laws applicable to LIFO.
The IRS requires companies that use LIFO for financial statement reporting to also use LIFO to calculate cost of goods sold on their tax returns. Why do you think the IRS wants companies to be consistent with the cost-flow assumption they use? What benefit could a company receive by choosing a different method for reporting than for its tax return?
1. Which of the following is not deductible from gross income? a. Transportation expense from the main office to the branch b. Transportation expense from home to the office and from the office back to home c. Travel expenses on business trips d. Travel expenses while away from home in the pursuit of trade, business or profession. 2. Examples of taxes that are deductible except: a. Occupation tax b. Privilege tax c. Documentary stamp tax d. Philippine income tax
Which depreciation method is most common for financial reporting? Which depreciation method is most common for tax reporting? Why do companies choose these methods?
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.
Explain the following A.Accounting profit B.Taxable profit C.Deffered taxes D.Employee benefits E.Property, plant and equipment.
question 6(a) Provide the costs incurred on the plant or machinery used for the purposeof the business which is entitled to be included as “qualifying expenditure”in tax law. if couldn't answer don't reject, let others to answer. Thank you.
In which situation does the tax depreciation allow the firms to defer paying income taxes?
How is a business activity distinguished from an investment activity? why is this distinction important for the purpose of calculating federal income taxes? What types of losses may potentially be characterized as passive losses?