Q: Unrealized los
A: Meaning: Deferred tax is defined as tax effect due to timing difference i.e. difference between…
Q: Explain the difference between marginal tax rates and average taxrates.
A: Marginal tax rate : The marginal tax rate is the system by which the federal taxation system makes…
Q: Future Tax Deductions A. Result in deferred tax liabilities. B.Rresult in deferred tax assets.…
A: Future tax deductions are the tax expenses that are to be deducted in the future period but were due…
Q: Whichofthefollowingstatementsis(are)correct?
A: A tax system is the system which has been put in place by the government in the country to collect…
Q: A Higher business tax will (Please select the best choice) (A) increase inflation (B) decrease…
A: Inflation refers to the rise in price levels of products or services. It generally happens if the…
Q: Explain very briefly what you understand from income effect and substitution effects of change in…
A: The effect of income tax rates in terms of income effect and substitution effect is explained as…
Q: What is the effect of a rise in the income tax on interest income? A rise in the income tax on…
A: Tax means the mandatory payment made by assesse to the government without expecting anything…
Q: Answer in points: Question. Difference between average and marginal tax rates
A: Average rate of tax is the amount of taxes paid on total income on average. For example, a business…
Q: what are the two tax rates whih are used to calculate AMT, ignoring the special treatment of…
A: A dividend seems to be the distribution of a part of a company's earnings to a selected group of…
Q: Non-assessable income does not increase tax liability, but tax-free income increases tax liability-…
A: Non-Assessable Income-: Non-assessable non-exempt revenue is common or statutory revenue that is…
Q: A deferred tax liability/asset is computed using the? either current or expected tax laws,…
A: A deferred tax liability/asset is computed using the:: either current or expected tax laws,…
Q: 25. Which of the following is a correct formula to compute for total income tax expense? * a.…
A: >Current Income tax is the combination of:--Income tax payable, which is the current year tax,…
Q: Explain and show graphically how a tax increase reduces demand and increases unemployment.
A: There is a direct relationship between tax rate and unemployment and demand. If the government…
Q: When they are net of taxes, prior period adjustments always increase the value of Retained Earnings…
A: Prior Period Adjustments: Correction of an error in the financial statements that were reported in…
Q: taxation policy? The average tax rate and the marginal tax rate are the same under the Select one: O…
A: Regressive Tax Policy: This form of taxation is progressive, meaning that the tax rate decreases as…
Q: Which of the following decreases the benefit of accelerating tax deductions? Decreasing tax rates…
A: The following thing which decrease the benefit of accelerating tax deductions According to the…
Q: Please in calculating return on year end capital employed = profit before tax / capital employed.…
A: Return on capital employed (ROCE): It is the type of profitability ratio that tells how well the…
Q: EBITD is equivalent to profits after taxes. true or false?
A: EBITDA is the earnings before interest tax depreciation and amortization.
Q: 1. In computing the CURRENT tax asset or CURRENT tax liability, which tax rate is used? a. Current…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: Income Taxes Payable or refundable + Changes in deferred income taxes = total income tax expense or…
A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…
Q: Which of the following methods is not allowed for tax purposes if FIFO (first in first out) is used…
A: Under FIFO(First in, First Out) method, inventories purchased first are assumed to be sold first.…
Q: What is the compressed adjusted present value(APV) model, and how does this differ from…
A: The sum of the net present value and the financial benefits calculated by other methods of…
Q: Deferred tax expense or benefit is the net change in DTL and DTA for the period. If the increase in…
A: Note: As per the policy, we’ll answer the first question since the exact one wasn’t specified.…
Q: Which of the following items isreported net of related income taxes?a. Gain or loss from…
A:
Q: Sizable tax returns that result from automatic prepayment of taxes should (A) increase tax fraud;…
A: Tax return: It can be defined as a document that is filed with the tax authority and shows the total…
Q: The tax rate paid on your last dollar of income is called the average tax rate. a. true b. false
A: Average tax rate is calculated as the total tax liability divided by taxable income, whereas…
Q: What is the real return? Multiple Choice The after-tax return on assets. The pre-tax return…
A: Rate of return is the percentage of profit that is earned on an investment.
Q: sset. a. TRUE b. FALSE
A: Solution: True. This is because Income tax benefit will decrease the current ta eapense means tax…
Q: The deferred tax expense is the Select one: a. decrease in balance of deferred tax asset minus…
A: Lets understand the basics. When there is taxable temporary difference between the book profit and…
Q: a. Find the marginal tax rate for the fo corporate earnings before taxes: $1
A: Marginal tax rate = Tax amount/Pre tax income
Q: Which cost flow assumption must be used for financial reporting if it is also used for tax…
A: Financial reporting: Financial reporting is a typical accounting procedure in which financial…
Q: deferred tax liability uses a. Expected future tax law, regardless of whether those expected laws…
A: Solution: Deferred tax liability is based on future taxable amounts which will be taxed in near…
Q: True or False The goal of tax planning is tax minimization.
A: The given statement is true.
Q: EBIT is equivalent to profits after taxes. true or false?
A: EBIT is the earnings before interest and tax.
Q: Would would an investor prefer to receive a distribution as a repurchase (capital gain)?…
A: A company, at a point of time, may have excess cash with it for the distribution purpose. It may use…
Q: Briefly describe the income impact and substitution effect of changes in income tax rates (you do…
A: The question describes the income impact and substitution effect of changes in income tax rates:
Q: Return on year end capital employed is profit before tax + interest / capital employed How do…
A: Introduction:- Return on capital employed is used to comparing the performance of companies. It is…
Q: The "income tax benefit" account reduces the current tax expense for the year and is a deduction…
A: Income tax: It implies to a financial levy that is imposed or charged on the taxable income of the…
Q: An excess tax depreciation will result to a deferred tax liability.
A: In many countries, companies maintain two sets of books of accounts for financial and tax purposes.…
Q: Net income after tax is: The difference of financial income and total deferred income tax expense.…
A: Net income is the amount of money earned by an entity after deducting its outlays from the revenues.…
Q: Which temporary difference would result in a deferred tax asset? a. Tax penalty or surcharge b.…
A: For an assets, the deferred tax asset arise when carrying amount of asset is lower than it's tax…
Q: Valuation allowances reduce deferred tax liabilities to the amount that is more likely than not to…
A: Solution:- A valuation allowance is used for the purpose of offsetting deferred tax asset. The…
Q: When they are net of taxes, prior period adjustments always increase the value of Retained Earnings…
A: The term 'prior period adjustments' described as any revenue or expenditures that occur in the…
Q: Deferred tax asset and deferred tax liability are based on future tax rates while current tax asset…
A: The concept of Deferred Tax arises due to the timing difference between income as per the accounting…
True or False
An increase in the
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- Short term capital gains taxes are higher than long term capital gains taxes. How does the different tax treatment impact the estimates of alpha in the CAPM model?Please in calculating return on year end capital employed = profit before tax / capital employed. With the profit before tax what do they add to the profit before tax before they divide it by the capital emWhen they are net of taxes, prior period adjustments always increase the value of Retained Earnings O True O False
- What is the real return? Multiple Choice The after-tax return on assets. The pre-tax return on assets. The inflation-adjusted return on assets. The interest-adjusted return on assets. None of the choices are correct.Using the adjusted present value model, under what assumptionsare the MM (with corporate taxes) results correct?the process of reducing the allowable deduction of interest expense by a certain percentage is called? a) tax arbitrage b) tax minimization c) tax avoidance d) tax limitation
- The Adjusted Present Value approach to valuation uses Interest Tax Savings to account for: a. The unlevered cost of equity. b. Property taxes. c. Dividends that could have been paid to common stockholders. d. Changes in capital structure over the planning period. e. None of the above.What is the impact of higher levels of accruals, such as accrued wages or accrued taxes? Is it likely that RR could make changes to accruals?The tax rate paid on your last dollar of income is called the average tax rate. a. true b. false
- Target profit before taxes is calculated as target profit after tax divided by one minus the tax rate. True FalseHow does an increase in the income tax rate affect the breakeven point?Your average tax rate a. equals your marginal tax rate. b. is none of these. c. is less than your marginal tax rate. d. is greater than your marginal tax rate
