INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781265246853
Author: SPICELAND
Publisher: PEARSON
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Chapter 16, Problem 16.31E
Concepts; terminology
• LO16–1 through LO16–8
Listed below are several terms and phrases associated with accounting for income taxes. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.
| List A | List B |
| _____ 1. No tax consequences | a. |
| _____ 2. Originates, then reverses | b. |
| _____ 3. Revise deferred tax amounts | c. 2 years |
| _____ 4. Operating loss | d. Current and deferred tax consequence combined |
| _____ 5. Future tax effect of prepaid expenses; tax deductible when paid | e. Temporary difference |
| _____ 6. Loss carryback | f. Specific tax rates times amounts reversing each year |
| _____ 7. Future tax effect of estimated warranty expense | g. Nontemporary differences |
| _____ 8. Valuation allowance | h. When enacted tax rate changes |
| _____ 9. Phased-in change in rates | i. Net deferred tax asset or liability |
| _____ 10. |
j. “More likely than not” test |
| _____ 11. Individual tax consequences of financial statement components | k. Intraperiod tax allocation |
| _____ 12. Income tax expense | l. Negative taxable income |
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Definitions
The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions.
Code Letter
Term
Code Letter
Term
A.
Future deductible amount
H
Deferred tax consequences
B
Income tax payable (or refund)
I
Future taxable amount
Operating loss carryback
Deferred tax liability
D
Valuation allowance
K
Temporary difference
E
Deferred tax asset
Income tax expense (or benefit)
F
Operating loss carryforward
M
Deferred tax expense (or benefit)
Taxable income
Required:
Indicate which term belongs with each definition by choosing the correct term.
1. The deferred tax consequences of future deductible amounts and operating loss carryforwards
2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or
settled, respectively
X
3. Temporary…
Please answer in good accounting form. Thankyou
8. Compute for the deferred tax asset.
20.
A temporary difference arises when a revenue item is reported for tax purposes in a period
After it is reportedin financial income
Before it is reportedin financial income
No
Yes
No
No
Yes
No
Yes
Yes
Chapter 16 Solutions
INTERMEDIATE ACCOUNTING
Ch. 16 - Prob. 16.1QCh. 16 - A deferred tax liability (or asset) is described...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Temporary differences result in future taxable or...Ch. 16 - Identify three examples of differences with no...Ch. 16 - The income tax rate for Hudson Refinery has been...Ch. 16 - A net operating loss occurs when tax-deductible...Ch. 16 - Prob. 16.10QCh. 16 - Additional disclosures are required pertaining to...
Ch. 16 - Additional disclosures are required pertaining to...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - IFRS and U.S. GAAP follow similar approaches to...Ch. 16 - Valuation allowance LO162, LO163 VeriFone Systems...Ch. 16 - Prob. 16.8ECh. 16 - Identify future taxable amounts and future...Ch. 16 - Prob. 16.14ECh. 16 - Identifying income tax deferrals LO161, LO162,...Ch. 16 - Concepts; terminology LO161 through LO168 Listed...Ch. 16 - FASB codification research LO165, LO168, LO1610...Ch. 16 - Prob. 16.1DMPCh. 16 - Prob. 16.2DMPCh. 16 - Prob. 16.9DMP
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