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- Which of the following represents the deferred tax expense?
- A tax rate other than the current tax rate should be used to calculate the deferred
- A valuation allowance account related to a loss carry-forward is a(n) __ account.
- Which of the following might a company do in order to create taxable income, when the benefit of a loss carryforward is in danger of expiring?
- If there is a chance that a company will not realize some portion of a deferred tax asset, they can use a valuation allowance to
- Under IFRS, the classification of the underlying asset or liability that causes a deferred tax asset or liability will
- Which of the following is required when tax benefits are recognized in a year when a taxable loss is incurred?
- Rosebud Ltd. incurred an accounting and taxable loss for 2021. The company has decided to use the carryback provisions as it had been profitable up to this year. How should the amounts related to the carryback be reported in the 2021 financial statements
- A __ for income tax purposes may be applied against income of the past 3 years.
- Under what circumstances would a tax rate other than the current tax rate be used to calculate the deferred income tax amount on the statement of financial position?
- Hamlin Metals prepares semi-annual financial statements. On their financial statement dated June 30, 2021, Hamlin reported a deferred tax asset of $341,000 that they expect to recover over the next three years. On August 8, 2021, a tax law was passed decreasing the corporate tax rate from 40% to 35%. The new tax will be enacted on January 1, 2023. When would Hamlin journalize the change in the value of their deferred tax asset?
- Current and deferred tax liabilities and assets are measured based on enacted future tax rates for companies using the
- The future tax effects that result from loss carry forwards are recognized through the establishment of __________.
- A deferred tax liability will be reported on the statement of financial position for which of the following situations?
- Which of the following is true of taxable temporary differences?
- Which of the following statements is true about a deferred tax liability?
- Pat Argo, CPA is meeting with the accounting staff and executives at Brady Football Helmets, a client of the accounting firm, to develop tax-planning strategies. For which of the following reasons might Brady’s accountants and executives have called this meeting?
- Which of the following is one of the reasons why companies are required to disclose information about their income taxes?
- Deferred tax accounts are reported on the statement of financial position as
1. Which of the following represents the deferred tax expense?
Select answer from the options below
The increase in the balance of deferred tax assets minus the increase in the balance of deferred tax liabilities.
The increase in the balance of deferred tax assets plus the increase in the balance of deferred tax liabilities.
The decrease in the balance of deferred tax assets minus the increase in the balance of deferred tax liabilities.
The increase in the balance of deferred tax liabilities minus the increase in the balance of deferred tax assets.
Answer: The increase in the balance of deferred tax liabilities minus the increase in the balance of deferred tax assets.
2. A tax rate other than the current tax rate should be used to calculate the deferred income tax amount on the statement of financial position when future tax rates have been substantively enacted into law.
Select answer from the options below
True
False
Answer: true
3. A valuation allowance account related to a loss carry-forward is a(n) __ account.
Select answer from the options below
asset
liability
contra liability
contra asset
Answer: contra asset