Exam 6: Accounting for Income Taxes

A cumulative financial accounting (book) loss over three years (36 consecutive months) likely would be considered significant negative evidence in a valuation allowance analysis.

Robinson Company had a net deferred tax liability of $34,340 at the beginning of the year, representing a net taxable temporary difference of $101,000 (taxed at 34 percent). During the year, Robinson reported pretax book income of $401,000. Included in the computation were favorable temporary differences of $51,000 and unfavorable temporary differences of $20,500. During the year, Congress reduced the corporate tax rate to 21 percent. Robinson's deferred income tax expense or benefit for the current year would be:

Which of the following statements best describes the ASC 740 rules related to the disclosure of the components of deferred tax assets and liabilities in the company's income tax note?

Which of the following statements best describes the ASC 740 process for evaluating a company's uncertain tax positions?

Bruin Company received a $100,000 insurance payment on the death of its company president. The company annually paid $1,000 of nondeductible insurance premiums on the policy. Bruin reported the insurance receipt as income and deducted the premium payments on its books. For ASC 740 purposes, the income and deduction are characterized as:

Which of the following items is not a permanent book-tax difference?