What circumstances lead to the recording of a deferred tax assets?
What circumstances lead to the recording of a deferred tax assets?
Homework Answers
Danna Spice Inc. has the following Deferred tax assets and liabilities. Deferred Tax Assets Deferred Tax...
Danna Spice Inc. has the following Deferred tax assets and liabilities. Deferred Tax Assets Deferred Tax Liabilities Allowance for bad debts $72,450 Depreciation (2,100,000) Reserve for warranties 90,300 Net Operating loss carry-forward 5,040 Deferred Compensation 252,000 Contributions carry-forward 0 Capital Loss carry-forward 0 Valuation allowance for deferred tax assets 0 Deferred tax assets, net of valuation allowance $419,790 Total Deferred Tax Liabilites $(2,100,000) What should Danna Spice Inc. recognize on the balance for these deferred tax assets and liabilities? a....
Why do deferred tax assets or deferred tax liabilities arise
Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable example. The reason for the deferred tax assets and liabilities have been explained with suitable example. Explain The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL.
22) Moody Corporation recorded the following deferred tax assets and liabilities: What will be the balances...
22) Moody Corporation recorded the following deferred tax assets and liabilities: What will be the balances in the deferred tax asset and deferred tax liability accounts on Moody Corporation's balance sheet? S 500,000 Deferred tax assets related to U.S. operations (600,000 Deferred tax liabilities related to U.S. operations 800,000 Deferred tax assets related to Canadian operations (2,000,000 Deferred tax liabilities related to European operations Net deferred tax liabilities $ 1,300,000
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and...
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and tax jurisdiction are: a. Reported separately in the balance sheet. b. Reflected only in the notes to the financial statements. C. Combined with noncurrent deferred tax assets and noncurrent deferred tax liabilities in the balance sheet to show a single net noncurrent among. d. Netted against one another and show as a net current asset or liability in the balance sheet. 7) of the...
At December 31, 2019. Acme Inc. had the following deferred tax balances: Deferred tax liability Deferred...
At December 31, 2019. Acme Inc. had the following deferred tax balances: Deferred tax liability Deferred tax asset Valuation allowance $ 52.500 84,000 21.000 These deferred tax balances relate to two items. First, Acme has recorded excess tax deductions related to its plant assets. At December 31, 2019 plant assets had a book value of $1,000,000 and a tax basis of $750,000 Second, Acme had a NOL carryforward in the amount of $400.000 at December 31, 2019. Acme determined the...
P4. Temporary Differences, Deferred Tax Assets and Liabilities, Realizability of Deferred Assets, Change in Tax Rate....
P4. Temporary Differences, Deferred Tax Assets and Liabilities, Realizability of Deferred Assets, Change in Tax Rate. The following information is available for the first 4 years of operations for Shooting Star Corporation: Taxable Income (incorporates all information presented) Enacted Tax Rate (%) Year $200,000 2018 40% 2019 132,000 40 110,000 2020 40 2021 120,000 40 On January 2, 2018, the firm acquired heavy equipment costing $200,000 in a cash transaction. The equip- ment had a useful life of 5 years...
Q12 Which of the following statements is correct? Deferred tax assets/liabilities are classified as noncurrent on...
Q12 Which of the following statements is correct? Deferred tax assets/liabilities are classified as noncurrent on the balance sheet. The classification of deferred tax assets/liabilities depends on whether the related asset is current or noncurrent. Deferred tax assets are classified based on their expected reversal dates. Deferred tax assets/liabilities are always classified as current on the balance sheet.
In RadioShack’s 2013 annual report, the company reported deferred tax assets of $259.3 million, offset by...
In RadioShack’s 2013 annual report, the company reported deferred tax assets of $259.3 million, offset by a valuation allowance of $228.8 million. Disclosure note 10 reported, in part: “We had deferred tax assets associated with our federal net operating losses, which will expire in 2033, of $132 million as of December 31, 2013. … We continue to provide a valuation allowance against all of our U.S. federal and state deferred tax assets in 2013. … We considered all available positive...
3. Deferred tax assets and deferred tax liabilities arise from: a. Permanent differences between book and...
3. Deferred tax assets and deferred tax liabilities arise from: a. Permanent differences between book and tax income. b. Agreements between companies and the Internal Revenue Service to pay taxes currently owed on the installment basis. c. Future taxable and future deductible items, respectively. d. Future deductible and future taxable items, respectively. e. All of the above. 4. Kobo Roger Corp.'s taxable income differed from its accounting income computed for this past year. An item that would create a permanent...
15. Which of the following statements is correct? a. All current deferred tax liabilities and assets...
15. Which of the following statements is correct? a. All current deferred tax liabilities and assets shall be offset and presented as a single amount on the balance sheet. b. Deferred tax assets related to carryforwards shall be classified as current or noncurrent on the balance sheet based on their expected date of reversal. c. All current and noncurrent deferred taxes shall be offset and presented as a single amount on the balance sheet. d. Deferred tax liabilities and assets...
22) Moody Corporation recorded the following deferred tax assets and liabilities: What will be the balances in the deferred tax asset and deferred tax liability accounts on Moody Corporation's balance sheet? S 500,000 Deferred tax assets related to U.S. operations (600,000 Deferred tax liabilities related to U.S. operations 800,000 Deferred tax assets related to Canadian operations (2,000,000 Deferred tax liabilities related to European operations Net deferred tax liabilities $ 1,300,000
6) For reporting purposes, deferred tax assets and deferred tax labilities for the same company and tax jurisdiction are: a. Reported separately in the balance sheet. b. Reflected only in the notes to the financial statements. C. Combined with noncurrent deferred tax assets and noncurrent deferred tax liabilities in the balance sheet to show a single net noncurrent among. d. Netted against one another and show as a net current asset or liability in the balance sheet. 7) of the...
At December 31, 2019. Acme Inc. had the following deferred tax balances: Deferred tax liability Deferred tax asset Valuation allowance $ 52.500 84,000 21.000 These deferred tax balances relate to two items. First, Acme has recorded excess tax deductions related to its plant assets. At December 31, 2019 plant assets had a book value of $1,000,000 and a tax basis of $750,000 Second, Acme had a NOL carryforward in the amount of $400.000 at December 31, 2019. Acme determined the...
P4. Temporary Differences, Deferred Tax Assets and Liabilities, Realizability of Deferred Assets, Change in Tax Rate. The following information is available for the first 4 years of operations for Shooting Star Corporation: Taxable Income (incorporates all information presented) Enacted Tax Rate (%) Year $200,000 2018 40% 2019 132,000 40 110,000 2020 40 2021 120,000 40 On January 2, 2018, the firm acquired heavy equipment costing $200,000 in a cash transaction. The equip- ment had a useful life of 5 years...
3. Deferred tax assets and deferred tax liabilities arise from: a. Permanent differences between book and tax income. b. Agreements between companies and the Internal Revenue Service to pay taxes currently owed on the installment basis. c. Future taxable and future deductible items, respectively. d. Future deductible and future taxable items, respectively. e. All of the above. 4. Kobo Roger Corp.'s taxable income differed from its accounting income computed for this past year. An item that would create a permanent...
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