Complete the following statements by filling in the blanks or choosing the correct answer in the parentheses.
(a) In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be (less than/greater than) accounting income.
(b) In a period in which a deductible temporary difference reverses, the reversal will cause taxable income to be (less than/greater than) accounting income.
(c) If a $76,000 balance in the Deferred Tax Asset account were calculated using a 25% rate, the underlying temporary difference would amount to $ _______.
(d) Deferred taxes (are/are not) recorded to account for permanent differences.
(e) If a taxable temporary difference originates in 2014, it causes taxable income of 2014 to be (less than/greater than) accounting income for 2014.
(f ) If total income tax expense is $50,000 and deferred tax expense is $65,000, then the current portion of the total income tax expense is referred to as a current tax (expense/benefit) of $ _______.
(g) If a corporation's tax return shows taxable income of $100,000 for Year 2 and a tax rate of 25%, how much will appear on the December 31, Year 2 statement of financial position for "Income tax payable" if the company has made estimated tax payments of $16,500 for Year 2? $ _______.
(h) An increase in the Deferred Tax Liability account on the statement of financial position is recorded by a (debit/credit) to the Deferred Tax Expense account.
(i) An income statement that reports current tax expense of $82,000 and a deferred tax benefit of $23,000 will report total income tax expense of $ _______.
(j) Under ASPE, a valuation account may be used whenever it is judged to be more likely than not that a portion of a deferred tax asset (will be/will not be) realized.
(k) If the tax return shows total income taxes due for the period of $75,000 but the income statement shows total income tax expense of $55,000, the difference of $20,000 is referred to as a deferred tax (expense/benefit).
(l) If a company's income tax rate increases, the effect will be to (increase/decrease) the amount of a deferred tax liability and _______ (increase/decrease) the amount of a deferred tax asset.
(m) The difference between the tax base of an asset or liability and its carrying amount is called a _______ difference. Differences between accounting income and taxable income that will reverse in the future are called _______ differences.