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Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income
Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts:
($ in millions) | |||||||||||
Temporary Differences Reported First on: | |||||||||||
The Income Statement | The Tax Return | ||||||||||
Revenue | Expense | Revenue | Expense | ||||||||
1. | $34 | ||||||||||
2. | $34 | ||||||||||
3. | $34 | ||||||||||
4. | $34 | ||||||||||
5. | 29 | 34 | |||||||||
6. | 34 | 29 | |||||||||
7. | 29 | 34 | 24 | ||||||||
8. | 29 | 34 | 19 | 24 | |||||||
Required: For each situation, determine taxable income assuming pretax accounting income is $240 million. For each situtation find the taxable income.
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