(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: TRUE OR FALSE? 1st statement: Interest income must be included in the computation of gross income if…

A: Gross Income: The entire earnings a person obtains before taxes and other deductions are referred to…

Q: The tax rules for determining business income are identical to those used for determining property…

A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…

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 following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

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: ed Brown University during 2016-2020 She lived at home and was claimed by he entre education. She…

A: Calculation of expenses of schooling : Expenses for schooling = Expenses incurred - Scholarship…

Q: The change in the total amount of Suki's allowance balance over the course of four weeks is shown in…

A: The balance of allowance represents the uncollectible accounts not expected to be collected, The…

Q: Which of the following refunds is not subject to income tax a, Local tax expense b.Special…

A: Answer: Th refund which is not subject to income tax are those amount for which earlier deduction…

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: Property taxes are considered: a. imposed tax revenues. b. derived tax revenues. c. voluntary…

A: Lets understand all the options. Imposed tax revenue is a revenue generated by the government based…

Q: It is legal and ethical to use one method of deprecia method on the company's financial statements.

A: True, it is legal and ethical to use one method of depreciation for taxes and another method on the…

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: Property plant and machinery are the fixed assets of the company which helps in production process.…

Q: The crucial reason for determining whether an item is deductible as an ex­pense under § 162 or under…

A: The internal Revenue Code § 212 (26 U.S.C. § 212) gives a deduction, for U.S. government annual duty…

Q: Only business expenses incurred in the generation of business gross income are deductible. a.…

A:

Q: When there is no specified agreement in the profit-sharing, what happens to the distribution of the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: rue or False Unearned revenue is revenue that is earned but not yet collected

A: Solution Concept Unearned revenue                 The term unearned revenue means the revenue which…

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: 1.The definition of gross income in the tax law is: A. All items specifically listed as income in…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Why should executory contracts be disclosed in the financial statements? Group of answer choices…

A: Executory contracts are contracts under which neither party has performed any of its obligations or…

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: Describe the depreciation procedures used in income taxation

A: The question deals with the depreciation procedures used in income taxation.

Q: Which of the following differences between financial accounting and tax accounting ordinarily…

A: The concept of Deferred Tax arises, due to the timing difference between income as per the…

Q: Which of the following is not deductible from business income? Group of answer choices Casual…

A: Business income is earned revenue that includes all money generated by an entity's operations.…

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: A company's physical or tangible long-term assets having a life of at least one year are referred to…

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: 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: To arrive at the accumulated taxable income, which of the following items does not represent a…

A: The Accumulated Adjustments Account (AAA) is a balance sheet account that contains the net…

Q: Demonstrate the computation and allocation of consolidated net income in the presence of a…

A: Non Controlling interest or Minority Interest is the ownership interests in the subsidiary that are…

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: What is the difference between a ‘net capital gain’ and a ‘capital gain, and between a ‘net capital…

A: The question is related to Capital Gain head. Capital gain means any profit or gain arising out of…

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.