Question
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
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 income to be ________ (less than, greater than) pretax financial income. b. If a $38,000 balance in Deferred Tax Asset was computed by use of a 20% 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 2020, it will cause taxable income for 2020 to be ________ (less than, greater than) pretax financial income for 2020. 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 20%, how much will appear on the December 31, Year 2, balance sheet for Income taxes payable if the company has made estimated tax payments of $18,250 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 $________ .
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