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What are the three characteristics of an asset and why does a deferred tax asset of a corporation meet these characteristics?
When does a corporation establish a valuation allowance? Give an example of positive evidence that might be used to justify that a valuation allowance.
What is intraperiod income tax allocation? How is income tax expense reported on a corporation's income statement and retained earnings statement?
What are the two steps that a company must complete for an uncertain tax position?
If a company believes that it is more likely than not to have future taxable income against which it can use its deferred tax asset.
In Year 1, its depreciation for financial reporting purposes is $3,500 and $5,000 for income tax reporting purposes.
Frankfort Company has an income tax rate of 35%. Explain whether this is a deferred tax asset or deferred tax liability, and calculate the amount.
Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madison Corporation's income taxes .
The depreciation expense during the current year for financial reporting is $1,000 and for income tax purposes is $2,000.
Carrot had current year taxable income of $10,000 and is subject to an enacted future tax rate of 30%.
The company is subject to income tax rates of 30% on the first $40,000 of income and 35% on all income in excess of $40,000.
Sky Company reports a pretax operating loss of $50,000 in Year 3 for both financial reporting and income tax purposes.
Its expected future income tax rate is 25%. Prepare Tally & Co.'s journal entry to record its operating loss carryforward.
Show how Barth James, Inc., would report these deferred tax assets and liabilities on its balance sheet.
The income tax rate for the current year is 30%, but Congress has enacted a 40% tax rate for 2011 and beyond.
Show how the deferred taxes would be reported on the Slater Company's December 31, 2010 balance sheet.
Fulhage Company has calculated the excess of its financial depreciation over its tax depreciation for future years.
Show how the deferred tax asset is reported on the Pito Company's December 31, 2010 balance sheet.
Based on verifiable evidence, the company decides it should establish a valuation allowance of 60% of its ending deferred tax asset.
The company expects its future deductible amount to be "deductible" in 2011 and its future taxable amount to be "taxable" in 2012.
What do you notice about the balance in the deferred taxes over the five years?
The current tax rate is 30% and no change in the tax rate has been enacted for future years. The company has positive, verifiable evidence of future taxable .
Prepare the income tax journal entry of the Keil Company at the end of 2010.
How should Brady account for the stock dividend, and how would it affect Brady's stockholders' equity at December 31, 2010? Explain why.
Because of decreasing sales, preliminary computations at the end of 2010 show that earnings per share will be only $2.99 per share.