Current liabilities include accrued expenses with a


State the tax base of each of the following liabilities.

(a) Current liabilities include accrued expenses with a carrying amount of $1,000. The related expense will be deducted for tax purposes on a cash basis.

(b) Current liabilities include interest revenue received in advance, with a carrying amount of $10,000. The related interest revenue was taxed on a cash basis.

(c) Current liabilities include accrued expenses with a carrying amount of $2,000. The related expense has already been deducted for tax purposes.

(d) Current liabilities include accrued fines and penalties with a carrying amount of $100. Fines and penalties are not deductible for tax purposes.

(e) A loan payable has a carrying amount of $1m. The repayment of the loan will have no tax consequences.

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Financial Accounting: Current liabilities include accrued expenses with a
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