(R) The balance sheet elimination for an intercompany profit in land involves the deduction of the after-tax profit from the "land" account. true or false

Q: Which of the following tax concept(s) allow for the deferral of gains on nonrecognition…

A: Non-recognition transactions, according to the Internal Revenue services are those transactions, on…

Q: The balance sheet elimination for an intercompany profit in land involves the deduction of the…

A: In consolidated financial statements, when a parent company and its subsidiary engage in…

Q: Which of the following creates temporary difference between financial and taxable income? * Interest…

A: Temporary differences are differences between pretax book income and taxable income that will…

Q: Which of the following "is not" a criteria that must be met to deduct business and/or investment…

A: When it comes to determining the deduction of expenses allowed to the taxpayer, there are various…

Q: temporary difference arises when an element of income is reported for tax purposes in the period:…

A: As per IFRS deferred  tax assets and liabilities  arises on temporary  differences which  can either…

Q: Which of the following options regarding income earned will not be classified as revenue? Select…

A: Lets understand the meaning of revenue and gain. Revenue is a income generated from the normal…

Q: TRUE OR FALSE? 1. Assets of the component held for sale shall be depreciated. 2. The income or loss…

A: The assets are treated as held for sale when the company intends to sell the assets in the near…

Q: resident of the Republic may pay tax

A: A resident of South Africa is liable to pay tax to SARS on his/her income across the world.

Q: Consider the following like-kind exchanges: (Click the icon to view the like-kind exchanges.)…

A: Realized Gain = FMV of Boot Received + FMV of Land Received - Basis of Land ExchangedRecognized Gain…

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: Deferred tax assets arising from the deductible temporary difference because of different treatment…

Q: under the cost recovery method of revenue recognition, a. Income is recognized immediately b. Income…

A: Cost recovery method of recognition of revenue is used when there exists substantial doubt regarding…

Q: An example of interperiod income tax allocation is reporting discontinued operations, net of tax. O…

A: The purpose of inter period income tax allocation is to allocate the income tax expenses to the…

Q: True or False Any net income obtained from selling a depreciated property according to its last…

A: Fixed assets are those assets which are held by the business for longer period of time. Depreciation…

Q: Two reason why expenses may not be deductiable for income tax/ corporatiion tax purposes.

A: Deductible expenses: These include all the expenses that are allowed to be deducted from the gross…

Q: Elements of gross income

A: Option B is wrong because realized income is an element of gross income. Option C is wrong because…

Q: Which of the following is a true statement? An amount realized on the disposition of property…

A: Amount realised is the compensation received by selling the property or an fixed asset. It includes…

Q: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…

A: Temporary differences are differences between book income and taxable income of the business. These…

Q: Explain how the following transactions result in taxable /deductible temporarydifference:a. Interest…

A: The objective of this question is to understand how certain transactions can result in taxable or…

Q: How do unearned revenues arise?

A:

Q: Which of the following items is not charged against the income of an estate? a. Ordinary repairs…

A: Lets understand the basics. As per basics accounting rules, expense should be charged against the…

Q: A. For some assets, straight-line depreciation is used for tax purposes while double-declining…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: The value of property for tax purposes, usually a percentage of the fair market value is known as…

A: Appraisal value refers to that on a specific date, the specific property’s current market value is…

Q: he deferred tax consequence attributable to a deductible temporary difference and operating loss…

A: Solution: Deferred tax assets are created from those temporary differences which are future…

Q: Select all that are true with respect to depreciation. Depreciation is a cash flow outflow at the…

A: Form 1040 Schedule 1 is used to report certain types of income that are not listed on the main 1040…

Q: Deferred tax assets and deferred tax liabilities represent the tax effect of the temporary…

A: A deferred tax asset represents a financial benefit, while a deferred tax liability indicates a…

Q: Depreciation is needed only for computing income taxes. True or false?

A:

Q: why the tax expense show in the income statement are different from tax paid in cash flow statement

A: Tax:   It is a compulsory payment imposed on individuals or entities on the basis of their income…

Q: Which of the following is not included under other income? a. Rent received b. Commission received…

A: OTHER INCOME: IT IS THE INCOME THAT DOES NOT COME FROM THE FIRMS MAIN BUSINESS.

Q: Land is classified on the Income statement in the Revenue section as income earned. True or False

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: What is a valuation allowance for deferred tax assets?  Provide two reasons why the valuation…

A: An accounting concept known as a deferred tax asset (DTA) is used in financial reporting to indicate…

Q: Which of the following indicates that a decision has precedential value for future cases?

A: Temporary book-tax differences arise when there is a difference between the amount of income or…

Q: A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross…

A: The purposes of adjustments to income in the context of U.S. taxation are as follows:Purpose of an…

Q: For tax purposes, one of the requirements to recognize income is: A) The transaction does not have…

A: For tax purposes, recognizing income typically involves the realization of income, which means the…

Q: Depreciation on rental property is an A. expense deductible against income B. out-of-pocket…

A: Depreciation When the fixed asset purchased by a company reduces its value over the period of time,…

Q: laxabie esent a positive adjustment? А. Capital loss carryovers В. Net operating loss deduction C.…

A: Here the question is regarding which is not a positive adjustment in computing the accumulated…

Q: A taxable income always results when a. none of the choices. b. revenues exceed the cost of goods…

A: Taxable income is the value at which the tax is calculated by the company.It is calculated by…

Q: Difference between the tax treatment of the purchase of a capital asset, such as a machine vs the…

A: There are various types of expenses which is incurred by the businessman in order to conduct it…

Q: Which is false? a. The estate tax is computed based on the net estate or taxable estate. b. The net…

A: The estate tax is computed after deducting the exemption value from the total value of the…

Q: With respect to transaction and translation gains and losses:   a. transaction gains and losses are…

A: Transaction and translation gains and losses are incurred by an organization operating in…

Q: Examples of items that are adjusted directly against equit rather than being included as part opf…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: What would be the tax treatment of a superficial loss?

A: A: Permanently denied is incorrect because a superficial loss is not permanently denied, but rather…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.