Why do deferred tax assets arise? Explain your answer with suitable example.
Q: What is the depreciation method that is used for tax accounting purposes? How is it different than…
A: Accelerated depreciation method:
Q: When does tax allocation within a period become necessary?How should this allocation be handled?
A:
Q: Understand and apply the concepts and procedures of interperiod tax allocation.
A: Inter-period tax allocation: The effect of tax on accounting events are recognized in the year it…
Q: Define Deferred tax asset.
A: Items on a company's balance sheet that may be used to reduce taxable income in the future are…
Q: What effect does intraperiod tax allocation have onreported net income?
A:
Q: What is meant by “tax allocation within a period”? What is the justification for such practice?
A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…
Q: Briefly describe the tax depreciation system under MACRS.
A: MACRS is an abbreviation of the Modified Accelerated Cost Recovery System. The present U.S. tax…
Q: HOW TO improve tax-planning effort
A: Tax planning is the examination of a financial condition or plan to make sure that all parts work…
Q: what are the characteristics of a good tax system?
A: Tax system is designed by the government of every country which is imposed on the individual’s…
Q: Define intrapreriod tax allocation.
A: Income tax: Income tax refers to the direct tax levied on individual person or business and…
Q: When is a receivable recognized for property tax assessments? When is the revenue recognized?
A: Property tax assessment is the process of evaluating the property for tax purposes. Then an…
Q: What is the difference between tax reliefs and tax credits?
A: Taxes are mandatory payments placed on individuals or businesses by a government agency, whether…
Q: What is the appropriate level of taxation?
A: Market efficiency and inefficiency depends on various factors like consumer demand, supply, rate of…
Q: What is a valuation allowance for deferred tax assets
A: A deferred tax asset is the opposite of a deferred tax liability, which can increase the amount of…
Q: How are deferred tax assets and deferred tax liabilitiesreported on the balance sheet?
A:
Q: Which is a deductible tax expense? Surcharges and penalties
A: Deductible tax expenses In a business entity the deductible tax expenses which includes any ordinary…
Q: What is deferred tax?
A: Balance sheet is the statement that indicates the final position of an entity.
Q: What is a deferred tax asset and how is the value created?
A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…
Q: What is the valuation allowance for deffered tax asset
A: Deferred tax asset(DTA) arises due to payment of higher tax in current year due to the variance…
Q: Explain the difference between tax reliefs and tax credits
A: Taxes are mandatory payments placed on individuals or businesses by a government agency, whether…
Q: Apply the concepts and procedures of interperiod tax allocation
A: Inter-period tax allocation: The effect of tax on accounting events are recognized in the year in…
Q: May an exaction be both a tax and regulatory fee
A: First of all we need to understand that Tax and Regulatory fees both are independent and can not…
Q: What valuation allowance is used with respect to a deferred tax asset?
A: Deferred tax asset: A deferred tax asset refers to an asset that is recognized due to a temporary…
Q: What is the value for IHT and capital gain tax (CGT) purposes?
A: What is Inheritance Tax?Inheritance Tax (IHT) is a tax on the estate of someone who has died,…
Q: Describe Tax Depreciation Methods?
A: Depreciation is a non-cash expense for the company. The depreciation expenses is charged because the…
Q: Describe the Replacement Analysis with Tax Considerations?
A: Introduction: Capital budgeting is one of the important techniques used to determine the value that…
Q: Discuss how a sales tax is regressive.
A: 1. Regressive Tax - Regressive Tax is a tax on the amount which decreases subject to the amount…
Q: What is the resort's net income for tax purposes?
A: Safe haven wildlife resort operate a proprietors-ship that generate $20000 in income under GAAP.…
Q: How can we use Replacement Analysis with Tax Considerations?
A: Using of replacement analysis with tax consideration help the investor in order to select the best…
Q: Discuss to what extent deferred tax accounting can be used for income smoothing.
A: Deferred tax is referred as an income taxes for the tax on the losses or profits of the company…
Q: Please discuss the deductibility of real property taxes.
A: Local governments and municipal corporations collect property taxes annually from landowners.
Q: appropriate data into the tax-accounting program. What are the values of B, n, and S in depreciating…
A: B = Purchase price + Transportation cost + Installation cost S = 10% of purchase price n =…
Q: describe the valuation allowance for deferred tax assets—when it is required and what impact it has…
A: Valuation Allowance: Deferred tax assets should be assessed on every balance sheet date. If it is…
Q: What is a deferred tax asset?
A: Deferred tax asset: When the Income Tax Expense account is more than the Income Tax Payable account,…
Q: Explain deferred tax assets.
A: Temporary Difference: Temporary difference refers to the difference of one income recognized by the…
Q: What is Tax Depreciation?
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
Q: Describe the procedure to incorporate the tax effects of gains (or losses) whenever an asset is…
A: Asset are considered to be capital items as they are held for more than a year and provide economic…
Q: Briefly explain how tax loss carryback and carryforward procedureswork.
A: Loss carryback is a situation in which business is having operating loss in this year and it want to…
Q: Determine the tax payable or overpayment if:
A: Tax is the expense over the individual or the earning body to pay the portion of their income to the…
Q: Define intraperiod tax allocation. Why is the process necessary?
A: Intra-period tax allocation: It is the allocation of an organization’s total income tax expense…
Q: What is meant by an effective tax rate? What does it measure?
A: The effective tax rate is the percent of individual or a corporation’s income that they pays in…
Q: Question: Explain the tax consequence of such awards
A: Tax is the amount which is paid by the taxpayer on the earnings earned during the year on the tax…
Q: How to calculate the answer of Tax Allowable depreciation?
A: Depreciation is the deduction in the value of the asset which leads to deduction in the tax as it is…
Q: How, and why, does the depreciation reported for tax purposes differ from that reported in the…
A: Depreciation is the amount to be written off periodically to charge the decline in value of a fixed…
Q: Describe when and how a valuation allowance is recorded for deferred tax assets.
A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…
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- Explain the concept of situs of taxation? Give examplesExplain why administrative and compliance costs of taxation is important regarding taxation? What are the specific measures that you are proposing to make a tax system simpler?Discuss to what extent deferred tax accounting can be used for income smoothing.