ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 10, Problem 10.15Q
How do interperiod income tax allocation procedures affect consolidation entries in the period in which intercompany profits unrealized as of the beginning of the period are realized?
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Students have asked these similar questions
Which of the following is an example of a temporary difference which would result in a deferred tax asset?
Investment gains recognized earlier for accounting purposes than for tax purposes
Use of a longer depreciation period for accounting purposes than is used for tax purpose
Use of straight-line method for accounting purposes and an accelerated rate for tax purposes
Rent revenue collected in advance included in taxable income before it is included in accounting income
Which statement is incorrect regarding other comprehensive income?
A. Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in the current or previous periods.
B. An entity may present items of other comprehensive income either net of related tax effects or before related tax effects with one amount shown for the aggregate amount of income tax relating to those items
C. Reclassification adjustments arise on all items of other comprehensive income.
D. Other comprehensive income comprises items of income and expenses (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by other PFRSs
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
Chapter 10 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 10 - Prob. 10.1QCh. 10 - Why are dividend payments to noncontrolling...Ch. 10 - Prob. 10.3QCh. 10 - Why are changes in inventory balances not shown in...Ch. 10 - Prob. 10.5QCh. 10 - How is an increase in inventory included in the...Ch. 10 - What portion of the sales of an acquired company...Ch. 10 - Prob. 10.8QCh. 10 - Prob. 10.9QCh. 10 - Prob. 10.10Q
Ch. 10 - Prob. 10.11QCh. 10 - Prob. 10.12QCh. 10 - Prob. 10.13QCh. 10 - Prob. 10.14QCh. 10 - How do interperiod income tax allocation...Ch. 10 - How does the use of interperiod tax allocation...Ch. 10 - Prob. 10.17QCh. 10 - Prob. 10.18QCh. 10 - Prob. 10.19QCh. 10 - When a subsidiary’s convertible bond is treated as...Ch. 10 - Prob. 10.21QCh. 10 - What effect does the presence of a noncontrolling...Ch. 10 - Prob. 10.3CCh. 10 - Consolidated Cash Flows Analysis The consolidated...Ch. 10 - Prob. 10.1ECh. 10 - Prob. 10.2ECh. 10 - Prob. 10.3ECh. 10 - Prob. 10.4ECh. 10 - Prob. 10.5ECh. 10 - Direct Method Cash Flow Statement Using the data...Ch. 10 - Prob. 10.7ECh. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Prob. 10.10ECh. 10 - Prob. 10.11ECh. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Prob. 10.14ECh. 10 - Effect of Convertible Bonds on Earnings per Share...Ch. 10 - Effect of Convertible Preferred Stock on Earnings...Ch. 10 - Prob. 10.17PCh. 10 - Prob. 10.18PCh. 10 - Preparing a Statement of Cash Flows—Direct Method...Ch. 10 - Prob. 10.20PCh. 10 - Prob. 10.21PCh. 10 - Prob. 10.22PCh. 10 - Prob. 10.23PCh. 10 - Prob. 10.24PCh. 10 - Prob. 10.25PCh. 10 - Prob. 10.26PCh. 10 - Prob. 10.27PCh. 10 - Prob. 10.28PCh. 10 - Prob. 10.29PCh. 10 - Prob. 10.30PCh. 10 - Prob. 10.31PCh. 10 - Prob. 10.32PCh. 10 - Prob. 10.33P
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- Which of the following is added to the financial income in computing for the taxable income? Unrealized gains from trading securities Excess of tax depreciation from the accounting amount Income exempt from income taxes Expenses disallowed for tax purposesarrow_forwardFrom a consolidated point of view, when should the profit be recognizedon intercompany sales of depreciable assets and non-depreciable assets?arrow_forward1. Which statement is true about intraperiod tax allocation? a. It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return b. It is required for the cumulative effect of accounting changes but not for prick period adjustments c. The purpose is to allocate income tax expense evenly over a number of accounting periods d. The purpose is to relate the income tax expense to the items which affect the amount of tax 2. Which temporary difference would result in a deferred tax asset? a. Tax penalty or surcharge b. Dividend received on share investment c. Excess tax depreciation over accounting depreciation d. Rent received in advance included in taxable income but deferred for financial accounting 3. Which temporary difference would result in a deferred tax liability? a. Interest revenue on municipal bonds b. Accrual of warranty expense c. Excess tax depreciation over…arrow_forward
- What is the controlling interest percentage for a business combination tax return? what does a “downstream” sale of inventory refer to and when is the profit recognized? What does an “upstream” sale of inventory refer to and when is the profit recognized? What is the difference between accounting under the “partial” equity and “full equity method?arrow_forwardWhich of the following refers to the elements of Comprehensive Income? a) Net Income, Interest Payments and Income Tax Payments b) Retained Earnings and Other Comprehensive Income c) Net Income and Other Comprehensive Income d) Sales and Other Comprehensive Incomearrow_forwardWhich is not generally accepted in presenting the income statement? A) the condensed income statement B) including income tax in determining income. including prior period error in determining income D) the consolidated income statement To Darrow_forward
- How will a capital gain distribution from a REIT be reported on the income tax return if Schedule D is not required to be filed?arrow_forwardThe Principle of Taxation class: What is the difference between income which is "realized" and income which is "recognized"? Which respect to gains/losses from Capital Assets like equity securities (stock), at what point is the gain realized and when is it currently recognized?arrow_forwardWhich of the following accounts cannot be altered by a consolidation adjusting entry A.Income tax payable B. Deferred tax liability C. Deferred tax Asset D. Income tax expensearrow_forward
- Which accounting principle guides the application of the installment method for reporting income? a ) Matching principle b) Revenue recognition principle c) Consistency principle d) Materiality principlearrow_forwardfor the following intercompany transaction state the principle to be used in accounting for intercompany gains on current and future consolidated income statements: Gains on the sale of depreciable fixed assetsarrow_forwardList the types of intercompany revenue and expenses that are eliminated in the preparation of a consolidated income statement and indicate the effect that each elimination has on the amount of net income attribute to non-controlling interestarrow_forward
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