(Terminology, Relationships, Computations, Entries) Instructions Complete the following statements by filling in the blanks. (a) In a...
Question:
(Terminology, Relationships, Computations, Entries) Instructions Complete the following statements by filling in the blanks.
(a) In a period in which a taxable temporary difference reverses, the reversal will cause taxable in- come to be (less than, greater than) pretax financial income.
(b) If a $76,000 balance in Deferred Tax Asset was computed by use of a 40% rate, the underlying cumulative temporary difference amounts to $
(c) Deferred taxes (are, are not) recorded to account for permanent differences.
(d) If a taxable temporary difference originates in 2007, it will cause taxable income for 2007 to be (less than, greater than) pretax financial income for 2007.
(e) If total tax expense is $50,000 and deferred tax expense is $65,000, then the current portion of the expense computation is referred to as current tax (expense, benefit) of $
(f) If a corporation's tax return shows taxable income of $100,000 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for "Income tax payable" if the company has made estimated tax payments of $36,500 for Year 2? $ (g) An increase in the Deferred Tax Liability account on the balance sheet is recorded by a (debit, credit) to the Income Tax Expense account. (h) An income statement that reports current tax expense of $82,000 and deferred tax benefit of $23,000 will report total income tax expense of $ (i) A valuation account is needed whenever it is judged to be tax asset (will be, will not be) realized. that a portion of a deferred (j) If the tax return shows total 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 deferred tax (expense, benefit).
Step by Step Answer:
Intermediate Accounting 2007 FASB Update Volume 2
ISBN: 9780470128763
12th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield