ACCT 302 Read & Interact Spiceland, Nelson, & Thomas Chapter 16 solutions complete answers

ACCT 302 Read & Interact Spiceland, Nelson, & Thomas Chapter 16 solutions complete answers 

 

The total of all future taxable amounts is multiplied by the _____ tax rate to determine the appropriate balance for the deferred tax liability account.

 

For tax years beginning before January 1, 2018, a net operating loss carryback can be applied to reduce previously reported taxable income in the _____ prior year(s).

 

A valuation account for a deferred tax asset would likely be necessary if

 

What is the tax rate used to measure deferred tax assets and liabilities?

 

In Year 1, Preston Inc. estimates bad debt expense of $20,000 for financial reporting purposes. The amount of bad debts deductible on the tax return was $8,000. The difference will be deducted on the tax return in the following year. The income tax rate is 40%. What is the tax basis of bad debts?

 

True or false: Income tax expense is calculated directly.

 

A future _____ amount creates a deferred tax asset, whereas a future _____ amount creates a deferred tax liability.

 

Which of the following cause a deferred tax liability to occur? (Select all that apply.)

 

The tax basis of an asset or liability is

 

Match the type of accounting with its goal or objective.

 

Income tax expense is calculated as the result of the combination of

 

Which of the following will create a deferred tax liability? (Select all that apply.)

 

Which item creates a future deductible amount?

 

A deferred tax        occurs when there is a future deductible amount. (Enter only one word.)

 

Deferred tax liabilities can arise from a revenue being reported on the tax return _____ the income statement, or an expense being reported on the tax return _____ the income statement.

 

In year 1, Ling estimates warranty expense of $60,000 for financial reporting purposes. The amount of warranties deducted on the tax return was $40,000. The difference will be deducted on the tax return in the following year. The income tax rate is 40%. What is the balance in the deferred tax asset account at the end of year 1?

 

Baskin's pretax accounting income in Year 2 is $100,000. Baskin received cash rental payments in advance for $20,000 in Year 1 and $30,000 in Year 2, which are taxed in the year of receipt. It is expected the rent will be recognized for financial reporting purposes as $25,000 in Year 3 and $25,000 in Year 4. The income tax rate is 40%. What is Baskin's tax basis for rental revenues in Year 2?

 

Smith Company receives $500,000 of subscription revenue in advance during 20X1. The subscription revenue is not included on the income statement, but is reported for tax purposes in 20X1. $250,000 will be recognized in 20X2 and $250,000 in 20X3. Smith Company is subject to a 40% tax rate. What is the amount of the deferred tax asset at the end of 20X2?

 

Which of the following is used to encourage certain activities such as investing in productive assets?

 

A valuation allowance is needed if _____ that some portion or all of a deferred tax asset will not be realized.

 

Tax laws permit installment sales, which are recognized in the year of sale for financial reporting purposes, to be reported in the tax return later when cash is received. This results in a deferred tax liability because taxable income is _______ than financial income in the year of sale, and _______ than financial income in later years when collected.

 

Which of the following are true about income tax expense?

 

Deferred tax assets are recognized for the future tax benefits of _____ differences.

 

A       difference is created when there is a timing difference of when an item is included in pretax accounting income and taxable income, whereas a       difference is one in which the amount is different between pretax accounting income and taxable income and never reverses.

 

In year 1, Kelley estimates bad debt expense of $10,000 for financial reporting purposes. The amount of bad debts deductible on the tax return was $2,000. The difference will be deducted on the tax return in the following year. The income tax rate is 40%. What is the balance in the deferred tax asset account at the end of year 1?

 

The tax rate used to measure deferred tax assets and liabilities is the        tax rate in the year(s) the temporary difference reverses. (Enter only one word.)

 

Smith Company receives $500,000 of subscription revenue in advance during 20X1. The subscription revenue is not included on the income statement, but is reported for tax purposes in 20X1. $250,000 will be recognized in 20X2 and $250,000 in 20X3. Smith Company is subject to a 40% tax rate. What is the amount of the deferred tax asset at the end of 20X1?

 

True or false: A company having multiple temporary differences must show them individually in the financial statements.

 

Under what circumstances is a deferred tax valuation account required?

 

A ______ occurs when tax deductible expenses exceed taxable revenues.

 

Which of the following are included in the journal entry for deferred taxes? (Select all that apply.)

 

A net operating loss carryforward creates

 

A permanent difference is a difference

 

When the tax laws change, which rate is used to value deferred tax assets and liabilities?

 

A net operating loss _____ must be applied to the earlier year first and then brought forward to the next year.

 

All temporary differences are categorized in which of the following ways? (Select all that apply.)

 

How are deferred tax assets and liabilities classified on the balance sheet?

 

A net operating loss occurs when

 

Which of the following items are disclosures for income tax expense in the notes to the financial statements? (Select all that apply.)

 

A net operating loss _____ create(s) a deferred tax asset.

 

Uncertainty in income tax expenses results from

 

A difference between financial accounting income and taxable income that never reverses is called a(n)        difference. (Enter only one word.)

 

A company may recognize tax benefits from the position it takes only if it is

 

What is the balance sheet effect of a net operating loss carryback that is allowed for a property and casualty insurance company?

 

What numbers are combined to determine income tax expense? (Select all that apply.)

 

Deferred tax liabilities should be netted against

 

Which of the following describes the proper treatment of discontinued operations on the income statement.

 

True or false: Only the current portion of the tax expense or benefit of a company is a required disclosure.

 

Allocating income taxes among financial statement components in a specific reporting period is known as ______ tax allocation.

 

True or false: Most companies' tax returns will include many tax positions that are subject to multiple interpretations.

 

Recognizing deferred tax assets and liabilities is referred to as ______ tax allocation.

 

What are the two steps used for reporting uncertain tax positions?

 

What approach does the FASB use in accounting for deferred taxes?

 

Which items on the income statement require separate income tax allocation? (Select all that apply.)

 

Allocating income taxes within a particular reporting period is referred to as what?

 

Which of the following is interperiod tax allocation?

 

 

A deferred tax asset arises when a revenue is taxed ________ and recognized in the income statement _________.
 
 
A ____________ difference is created when there is a timing difference of when an item, is included in pretax accounting income and taxable income, whereas a __________ difference is one in which the amount is different between pretax accounting income and taxable income and never reverses.
 
 
A ______ difference originates in one period and reverses in a subsequent period.
 
 
Golden Eagle Enterprises has the following deferred tax assets and liabilities:

Deferred tax assets-noncurrent: 25k
Deferred tax liab.-noncurrent: 8k

What amounts should be disclosed for deferred taxes on the balance sheet at year-end?
 
 
If tax laws allow a company to postpone paying taxes on activities that are currently reported in the company's income statement, the company recognizes a ___________ to reflect the anticipated future taxable amounts.
 
 
Income tax expense is comprised of which of the following components?
 
 
 
 
 
 
 
 

Johnson Company has $50,000 in deferred tax assets, $110,000 in deferred tax liabilities, and a $15,000 valuation allowance that relate to the same tax-paying component of the company and the same tax jurisdiction. What amount(s) should be shown on Johnson's balance sheet related to its deferred taxes?
 
 
A net operating loss carryforward creates a tax benefit on the income statement in the year
 
 
A _____ result(s) in future taxable amounts when the temporary difference reverses.
 
 
 
 
 
 
 
 

Temporary differences are
 
 
Temporary differences that result in future taxable amounts create deferred tax _______________, while temporary differences that result in future deductible amounts create deferred tax ___________________.
 
 
True or false: The tax benefit created by a net operating loss is recognized in the income statement in the year the loss occurs.
 
 
When revenue is taxed when collected, but recognized in income statements in later years when the performance obligation is satisfied, what is created?
 
 
Which of the following is true regarding income tax expense?
 
 
 
 
 
 
 
 

 
Which of the following items are classified as deferred tax liabilities? (Select all that apply.)
 
 
 

An asset or liability's original value for tax purposes reduced by any amounts included to date on tax returns is referred to as the
 
 
Financial accounting standards are established to
 
 
 

 
What is another name for negative taxable income?
 
 
 

 
Which item creates a future taxable amount?
 
 
 

Adjustments to the valuation allowance are based on the amount of the deferred tax asset that will not be realized due to insufficient _____ _____ in future years.
 
 
Baskin's pretax accounting income in 20X2 is $100,000. Baskin receives cash rental payments in advance for $20,000 in 20X1 and $30,000 in 20X2, which are taxed in the year of receipt. It is expected the rent will be recognized for financial reporting purposes as $25,000 in 20X3 and $25,000 in 20X4. The income tax rate is 40%. What is the amount in the deferred tax asset account at the end of 20X3?
 
 
Baskin's pretax accounting income in 20X2 is $100,000. Baskin receives cash rental payments in advance for $20,000 in 20X1 and $30,000 in 20X2, which are taxed in the year of receipt. It is expected the rent will be recognized for financial reporting purposes as $25,000 in 20X3 and $25,000 in 20X4. The income tax rate is 40%. Which of the following entries is included in the journal entry to record deferred taxes at the end of 20X2?
 
 
Brindle Corp. is a merchandiser in its first year of operations and has a net loss of $100,000. Brindle expects to be profitable within the next 2 years. The enacted income tax rate is 40%. The income tax benefit from Brindle's NOL is
 
 
Brindle Corp. is in its first year of operations and has a net operating loss for tax purposes of $100,000. Brindle expects to be profitable within the next 2 years. The enacted income tax rate is 40%. Which of the following entries are included to record the NOL carryforward?
 
 
Bryce Corporation has pretax accounting income of $100,000. Bryce has interest on municipal bonds of $7,000. Depreciation for tax purposes is $5,000 greater than depreciation for financial reporting purposes. Bad debt expense was $3,000, and bad debts for tax purposes was $1,000. Calculate taxable income.
 
 
Carson has a deferred tax asset of $10,000. At the end of the year, Carson's accountant determines that it is more likely than not that $3,000 of the deferred tax asset will not be realized. Which of the following is included in the journal entry at year-end?
 
 
Consider the following estimated tax benefits relating to an uncertain tax position: Benefit of $10 with 20% likelihood; benefit of $8 with 30% likelihood; benefit of $7 with 20% likelihood; benefit of $6 with likelihood of 30%. The amount of the benefit by which income tax expense should be reduced is:
 
 
Crane Corp. has pretax accounting income of $100,000. Crane has rent received in advance of $10,000. It is expected that Crane will report the revenue on the income statement in the following year when the performance obligation is satisfied. Crane has tax depreciation that is $25,000 more than depreciation expense for financial reporting purposes. The enacted tax rate is 30%. Which of the following entries will be included in the journal entry to record income tax at year-end?
 
 
A deduction that is allowed on the tax return in one year, but is not recognized in financial income until a later period is an example of a
 
 
A deferred tax liability will result in tax
 
 
A deferred tax ______ occur(s) when there is a future taxable amount.
 
 
Depreciation is typically reported on the tax return _____ it is reported on the income statement.
 
 
The effective tax rate equals _____ divided by pretax accounting income.
 
 
An entry to increase the valuation allowance includes a _________ to the valuation allowance and a ________ to income tax expense.
 
 
The expected tax savings created by a net operating loss carryforward often is labeled as an income tax _____ on the income statement
 
 
 
 
 
 
 
 
 
 
 

A future taxable amount means taxable income will be _____ relative to pretax accounting income, whereas a future deductible amount means taxable income will be _____ relative to accounting income.
 
 
Garrett has a deferred tax asset of $20,000. At the end of the year, Garrett has determined that it is more likely than not that $4,000 of the deferred tax asset will not be realized. The deferred tax asset should be reported in the balance sheet at
 
 
Gregory recognized a tax benefit of $6 relating to an uncertain tax position of $10. When uncertainty is resolved and, subsequently, the entire position is disallowed, Gregory should
 
 
Gross recognized a tax benefit of $7 relating to an uncertain tax position of $10. If subsequently, the entire position is allowed, Gross should
 
 
How frequently is the valuation allowance for deferred tax assets reevaluated?
 
 
If a company believes it is not "more likely than not" that it will be able to sustain a tax position on its merits, which of the following is true?
 
 
If a company believes there is a 40% chance of their uncertain tax position being upheld,
 
 
If a company's entire uncertain tax position is subsequently upheld, it will record a reduction to income tax _____ to reflect that it owes no additional tax.
 
 
If foreign earnings are "repatriated," the company must pay taxes at a _____ rate than if they do not transfer foreign earnings back to the United States.
 
 
If it is determined that it is more likely than not that a tax benefit will not be realized, the company would record the following:
 
 
If it is more likely than not that all or a portion of a deferred tax asset will not be realized, then the amount of the deferred tax asset reported on the balance sheet should be reduced by a _____ _____.
 
 
In 20X1, Modern Property Groups collected rent revenue for 20X2 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy rental property. But for income tax reporting it is taxed when collected. The deferred portion of the rent collected in 20X1 was $40,000. Taxable income is $100,000. No temporary differences existed at the beginning of the year, and the tax rate is 30%. The journal entry to record income taxes at the end of 20X1 includes
 
 
In 20X1, Preston Inc. estimates bad debt expense of $20,000 for financial reporting purposes. The amount of bad debts deductible on the tax return was $8,000. The difference will be deducted on the tax return in the following year. The income tax rate is 40%. Which of the following would be included in the journal entry to record deferred taxes in 20X1?
 
 
The income tax benefit of a net operating loss carryforward is recognized for accounting purposes when?
 
 
 
 
 
 
 
 

In year 1, Casa Corp. has depreciation expense for income statement purposes of $20,000. The depreciation deduction on the tax return was $30,000. The enacted tax rate is 40%. Casa's pretax income for the year was $100,000, and its taxable income was $90,000. If this is the only difference between pretax income and taxable income, the journal entry to record tax expense for the year would include which of the following entries?
 
 
In year 1, Casa Corp. has depreciation expense for income statement purposes of $20,000. The depreciation deduction on the tax return was $30,000. The enacted tax rate is 40%. If this is the only difference between pretax income and taxable income, Casa would record a
 
 
In year 1, Crest Company purchased equipment for $75,000. Crest uses straight-line depreciation over a 5-year useful life with no residual value for financial reporting purposes. In year 1, tax depreciation was $30,000. At the end of year 1, the carrying value for accounting purposes is ______, and the tax basis is ______.
 
 
In year 1, Heron Corp. has depreciation expense for income statement purposes of $10,000. The depreciation deduction on the tax return was $14,000. The enacted tax rate is 30%. Heron's pretax income for the year was $80,000, and its taxable income was $76,000. If this is the only difference between pretax income and taxable income, the journal entry to record tax expense for the year would include which of the following entries?
 
 
In year 1, Lawrence Corp. purchased equipment for $100,000. Lawrence uses straight-line depreciation over a 10-year useful life with no residual value for financial reporting purposes. In year 1, tax depreciation was $14,000. At the end of year 1, the carrying value for accounting purposes is ______, and the tax basis is ______.
 
 
In year 1, Rex Corp. has rental revenues of $400,000 for income statement purposes. For tax purposes, Rex recorded rental income of $440,000 on the tax return. Pretax income was $100,000, and taxable income was $140,000. The enacted tax rate is 40%. The rental revenue is the only difference between pretax income and taxable income. Which of the following would be included in the journal entry for Rex to record tax expense for year 1?
 
 
In Year 1, Warren Company includes $50,000 of installment sales income on its income statement. $25,000 will be collected in Year 2 and $25,000 in Year 3 and will be reported on the tax return when collected. The enacted tax rate is 40%. What amount of deferred tax liability does Warren report at the end of Year 1?
 
 
Items related to which of the following make up other comprehensive income?
 
 
Klein recognized a tax benefit of $7 relating to an uncertain tax position of $10. If subsequently, the entire position is disallowed, Klein should
 
 
 
 
 
 
 
 

Liberty Corp. receives rent in advance of $100,000 in 20X1. The timing difference is expected to reverse $40,000 in 20X2 and $60,000 in 20X3. The enacted tax rates are 20% in 20X1, 25% in 20X2, and 30% in 20X3. What is the amount in the deferred tax asset account at December 31, 20X1?
 
 
Little Corporation has pretax accounting income of $100,000. Little has interest on municipal bonds of $9,000. Depreciation for tax purposes is $4,000 greater than depreciation for financial reporting purposes. Little paid life insurance on executive officers of $5,000. Warranty expense was $10,000, and warranties paid for tax purposes was $8,000. Calculate taxable income.
 
 
Loran's pretax accounting income in 20X1 is $100,000. Loran had bad debt expense for financial reporting purposes of $14,000 in 20X1. In 20X1, Loran deducted $4,000 in bad debts. Loran expects the temporary difference to reverse $3,000 in 20X2 and $7,000 in 20X3. The income tax rate is 40%. What is the amount in the deferred tax asset account at the end of 20X2?
 
 
Loran's pretax accounting income in 20X1 is $100,000. Loran had bad debt expense for financial reporting purposes of $14,000 in 20X1. In 20X1, Loran deducted $4,000 in bad debts. Loran expects the timing difference to reverse $3,000 in 20X2 and $7,000 in 20X3. The income tax rate is 40%. Which of the following entries would be included for the deferred tax entry required at the end of 20X2?
 
 
Madhu Corp. receives rent in advance of $100,000 in 20X1. The timing difference is expected to reverse $40,000 in 20X3 and $60,000 in 20X4. The enacted tax rates are 30% in 20X1 and 20X2. At the end of 20X2, the balance in the deferred tax asset account is $30,000. In 20X2, the tax laws are changed, and the new enacted tax rate for 20X3 and thereafter is 40%. Which of the following entries would be included in the journal entry to adjust the deferred tax account at December 31, 20X2?
 
 
Manning Insurance is a property and casualty insurance company in its fifth year of operations. The income tax rate is 40%. Manning had taxable income (loss) as follows: Year 1 $10,000 Year 2 $40,000 Year 3 $30,000 Year 4 $20,000 Year 5 ($300,000) The operating loss for financial reporting purposes is $300,000 in year 5. Assuming Manning is allowed to carryback its NOLs for two years, calculate the net loss after taxes for financial reporting income.
 
 
 
 
 
 
 
 

Mueller Corp. determines that it is more likely than not that $100,000 of its $500,000 deferred tax asset will not be realized in future years. Mueller should record a journal entry that includes a ________ to _________.
 
 
Munten Company's management derives four estimates relating to the possible tax benefit of its tax position. The amount that Munten should recognize relating to this potential tax benefit is the
 
 
A net operating loss carryback can be applied to reduce previously reported taxable income in the _____ prior year(s).
 
 
Newberry Corp. has pretax accounting income of $100,000. Newberry has tax depreciation in excess of financial accounting depreciation of $20,000. Bad debt expense on the income statement was $5,000, and bad debts for tax reporting was $2,000. The enacted tax rate is 40%. Which of the following entries will be included in the journal entry to record income tax at year-end?
 
 
NOL carryforwards produce cash savings because they _____ future taxable income.
 
 
Olaf Corp. is in its third year of operations.Olaf had taxable income (loss) as follows: Year 1 $10,000 Year 2 $(50,000) Year 3 $20,000 The NOL carryforward at the end of Year 3 is
 
 
Other comprehensive income items are reported _____ of their respective income tax effects.
 
 
Parson's pretax accounting income in 20X2 is $100,000. Parson deducts depreciation for tax purposes in excess of accounting depreciation of $5,000 in 20X1 and $10,000 in 20X2. It is expected the depreciation deduction will reverse $7,000 in 20X3 and $8,000 in 20X4. The income tax rate is 40%. What is the amount in the deferred tax liability account at the end of 20X2?
 
 
Parson's pretax accounting income in Year 2 is $100,000. Parson deducts depreciation for tax purposes in excess of accounting depreciation of $5,000 in Year 1 and $10,000 in Year 2. It is expected the depreciation deduction will reverse $7,000 in Year 3 and $8,000 in Year 4. The income tax rate is 40%. Which of the following entries is included in the journal entry to record deferred taxes at the end of Year 2?
 
 
Payne Corporation has a permanent difference of $20,000 for life insurance premiums on corporate executives. What effect does this have on the effective tax rate?
 
 
Peachtree Corp. is a merchandiser in its fourth year of operations. Peachtree had taxable income of $20,000 in year 1, $30,000 in year 2, and $50,000 in year 3. In year 4, Peachtree incurred a $400,000 net operating loss for tax purposes. The NOL carryforward is
 
 
A permanent difference is
 
 
Persimmon Corp. is a property and casualty insurance company in its fourth year of operation. Persimmon had taxable income of $20,000 in year 1, $30,000 in year 2, and $50,000 in year 3. In year 4, Persimmon incurred a $400,000 net operating loss. Persimmon is allowed to carry its NOLs back two years. Assuming the tax rate is 40% and Persimmon's pretax accounting loss was $400,000, the net loss for financial reporting purposes in year 4 is
 
 
 
 
 
 
 
 

Regina Corp. is a property and casualty insurance company in its third year of operations and has a net loss of $100,000. Regina had taxable income of $10,000 and $30,000 in its first and second year of operations, respectively. Regina expects to be profitable within the next year. Regina is allowed to carry back the net operating loss to previous years. The enacted income tax rate is 40%. The income tax benefit from the NOL carryforward shown on Regina's income statement in the year of the loss is
 
 
Regina Corp. is in its first year of operations and has a net loss of $50,000. Regina expects to be profitable within the next three years. The enacted income tax rate is 21%. Which of the following entries is included in the journal entry to record the NOL carryforward?
 
 
Rice Corp. has tax depreciation in excess of financial reporting depreciation of $100,000 in 20X1. The timing difference is expected to reverse $30,000 in 20X2 and $70,000 in 20X3. In 20X1, the enacted tax rates were 40% for 20X1 and thereafter. However, during 20X2, the enacted rate was changed to 30% for years 20X3 and thereafter. Rice records the journal entry for deferred taxes at the end of 20X2 at the tax rate of 40%, and then prepares an adjusting entry to appropriately revalue the deferred tax account at year-end. Which of the following entries is required to record the adjusting entry for the change in enacted tax rates?
 
 
Rocky Corp. receives rent in advance of $100,000 in 20X1. The timing difference is expected to reverse $30,000 in 20X2 and $70,000 in 20X3. The enacted tax rates are 30% in 20X1 and 20X2, and 40% in 20X3. What is the amount in the deferred tax asset account at December 31, 20X1?
 
 
Rosa's pretax accounting income in 20X2 is $3,000. Rosa deducts depreciation for tax purposes in excess of accounting depreciation of $300 in 20X1 and $700 in 20X2. It is expected the depreciation deduction will reverse $500 in 20X3 and $500 in 20X4. The income tax rate is 40%. What is the amount in the deferred tax liability account at the end of 20X2?
 
 
Rosa's pretax accounting income in Year 2 is $3,000. Rosa deducts depreciation for tax purposes in excess of accounting depreciation of $300 in Year 1 and $700 in Year 2. It is expected the depreciation deduction will reverse by $500 in Year 3 and $500 in Year 4. The income tax rate is 40%. Which of the following entries is included in the journal entry to record deferred taxes for Year 2?
 
 
Smith Company operates a farm-related business. It suffers an operating loss of $100,000 in 20X3. Smith incurred taxable income of $150,000 in 20X1 and taxable income of $75,000 in 20X2. Smith qualifies to use the NOL carryback. Which year(s) will the NOL carryback affect?
 
 
Smith Company reports $5 million of pretax income that includes a $500,000 gain on disposal of a discontinued operation. Smith Company is subject to a 40% tax rate. What is the amount Smith Company should report on the income statement for the gain?
 
 
 
 
 
 
 
 

Smith Company reports $5 million of pretax income that includes a $500,000 loss on disposal of a discontinued operation. Smith Company is subject to a 40% tax rate. What is the amount Smith Company should report on the income statement for the loss?
 
 
A taxable amount in a future year creates a deferred tax _____.
 
 
Tax laws that permit the cost of a depreciable asset to be deducted in the tax return sooner than it is reported as depreciation for financial reporting purposes lead to the creation and subsequent reversal of deferred tax _____.
 
 
A temporary difference is a difference between ______ and taxable income that will reverse in another year.
 
 
The total of all future taxable amounts is multiplied by the _____ tax rate to determine the appropriate balance for the deferred tax liability account.
 
 
True or false: Items in other comprehensive income are reported without the respective income tax effects.
 
 
True or false: When a phased-in change in tax rates is scheduled to occur, all future temporary differences are multiplied by the current tax rate to determine deferred tax liability and/or asset.
 
 
A valuation account for a deferred tax asset would likely be necessary if
 
 
What information must be disclosed in the disclosure notes to the financial statements for net operating loss carryforwards?
 
 
What is the tax rate used to measure deferred tax assets and liabilities?
 
 
When a company takes an uncertain tax position and it is uncertain when the position will be resolved, where should liability for potential additional tax be reported on the financial statements?
 
 
 
 
 
 
 
 

When a phased-in change in tax rates is scheduled to occur,
 
 
When can the benefit of future deductible amounts be realized?
 
 
When estimated expenses are recognized in income statements when incurred, but deducted on tax returns in later years when paid, what is created?
 
 
When managers make decisions, they consider tax effects because their goal is to
 
 
When other comprehensive income items are reported in the statement of comprehensive income, they are reported _____ of their respective income tax effects.
 
 
Which of the following are benefits of a net operating loss carryforward? (Select all that apply.)
 
 
Which of the following are effects of a valuation allowance account for deferred taxes? (Select all that apply.)
 
 
Which of the following are required disclosures for deferred tax assets and liabilities in the notes to the financial statements? (Select all that apply.)
 
 
Which of the following can indicate a tax shelter? (Select all that apply.)
 
 
Which of the following is a required disclosure related to deferred tax assets and deferred tax liabilities? (Select all that apply.)
 
 
Which of the following is true related to deferred tax liabilities? (Select all that apply.)
 
 
Which of the following items are permanent differences? (Select all that apply.)
 
 
 
 
 
 
 
 

Which of the following items would create a deferred tax asset? (Select all that apply.)
 
 
Which of the following must be disclosed in a company's disclosure notes regarding net operating loss carryforwards? (Select all that apply.)
 
 
Which of the following occur when a company repatriates foreign earnings and repatriates cash? (Select all that apply.)
 
 
Which of the following parties is most likely to disagree with the position a company takes on its tax return? (Select all that apply.)
 
 
Which of the following statements are true with respect to permanent differences? (Select all that apply.)
 
 
Why should outside analysts and investors consider how effectively management has managed the company's tax exposures?
 
 
Why should outside analysts monitor a company's tax exposure?