18. Current Attempt in Progress Taxable income of a corporation differs from pretax financial income because of Permanent Differences Temporary Differences Yes No Yes Yes No No No Yes
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18.
| Permanent Differences |
Temporary Differences |
| Yes | No |
| Yes | Yes |
| No | No |
| No | Yes |
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Solved in 2 steps
- Question 18 of 30. Distributable net income (excluding tax-exempt int O Serves as the upper limit on the amount of the Inco O Will always equal fiduciary accounting income. O Usually includes capital gains and losses. Is calculated on Schedule A (Form 1041).1. Which of the following differences would result in future taxable amounts? a. Revenues or gains that are taxable before they are recognized in financial income. b. Expenses or losses that are deductible after they are recognized in financial income. c. Expenses or losses that are deductible before they are recognized in financial income. d. Revenues or gains that are recognized in financial income but are never included in taxable income. 2. If a company constructs a laboratory building to be used as a research and development facility, the cost of the laboratory building is matched against earnings as a. research and development expense in the period(s) of construction. b. depreciation deducted as part of research and development costs. c. depreciation or immediate write-off depending on company policy. d. an expense at such time as productive research and development has been obtained from the facility. 3. How should research and development costs be accounted for, according…Question 1 Taxable income of a corporation: A.) differs from accounting income due to differences in intraperiod allocation between the two methods of income determination. B) is based on international financial reporting standards C) differs from accounting income due to differences in interperiod allocation and permanent differences between the two methods of income determination. D) is reported on the corporation's income statement. Question 2 Taxable income of a corporation differs from pretax financial income because of Permanent Temporary Differences Differences Select one: a. No Yes b. Yes No c. No No d. Yes Yes Question 3 The deferred tax expense is the Select one: a. decrease in balance of deferred tax asset minus the increase in balance of deferred tax liability. b. increase in balance of deferred tax asset plus the increase in balance of deferred tax liability. c. increase in balance of deferred tax asset minus the increase in…
- when a C-Corp distributes appreciated assets to its shareholders should recognize in in the corporate return a taxable profit on the appreciation?26. Which of the following differences would result in future taxable amounts? * a. Expenses and losses that are O deductible after they are recognized in financial income. b. Revenues or gains that are taxable before they are recognized in financial income. c. Expenses or losses that are deductible before they are recognized in financial income. d. Revenues or gains that are recognized in financial income but are never included in taxable income.Taxable income of a corporationSelect one: a.is reported on the corporation's income statement. b.is based on international financial reporting standards c.differs from accounting income due to differences in intraperiod allocation between the two methods of income determination. d.differs from accounting income due to differences in interperiod allocation and permanent differences between the two methods of income determination.
- Assume that it is a domestic corporation using itemized deduction, compute the net taxable incomeWhich of the following causes a temporary difference between taxable and pretax accounting income? A. Investment expenses incurred to generate tax-exempt income. B. MACRS used for depreciating equipment. C. The dividends received deduction. D. Life insurance proceeds received due to the death of an executive.Which of the following creates temporary difference between financial and taxable income? * Interest on treasury debt securities Accelerated depreciation on plant and equipment O Fines from vilation of law Premiums paid for officer's life insurance (comapny is beneficiary)
- Which, if any, of the following transactions incurred by an S corporation is not a separately stated item? A Tax-exempt income. B Foreign tax credit. C AMT adjustments and tax preference items. D Amortization of organizational expenditures. E Domestic production activities deduction (DPAD).Which of the following statements best describes the income tax expense recognised in an entity’s income statement according to IAS 12? a. The income tax related to the accounting profit (pre-tax) for the period b. The income tax related to the taxable profit for the period c. The income tax paid in cash during the period d. The product of the applicable tax rate and the taxable profit for the periodRecipients of a distributions under IRC Section 302(b)(3) are eligible for capital gain treatment only if the distributing corporation does not have earnings and profits. True or False Explanation
