Exam 16: Income Taxes

Which factor would most likely cause a firm to choose the carryforward option for an NOL?

Which of the following represents a permanent difference?

An example of a "deductible temporary difference" occurs when

Which of the following creates a permanent difference between financial income and taxable income?

For three consecutive years,2012-2014,Siamese Corporation has reported income before taxes of $200,000 for both financial reporting purposes and tax reporting purposes.During this time,Siamese income tax rates were as follows: In 2015,Siamese' tax rate changed to 35 percent.Also in 2015,the company reported a loss for both financial reporting and tax reporting purposes of $200,000.Assuming the company uses the carryback provisions,the amount Siamese' should report as an income tax refund receivable in 2015 is

Which of the following creates a temporary difference between financial and taxable income?

Which of the following temporary differences ordinarily creates a deferred tax asset?

Seymour Associates computed a pretax financial income of $280,000 for the first year of its operations ended December 31,2014.Included in financial income was $20,000 of nondeductible expense and $70,000 gross profit on installment sales that was deferred for tax purposes until the installments were collected. The temporary differences are expected to reverse in the following pattern. The enacted tax rates for this year and the next three years are as follows:

Which of the following temporary differences ordinarily results in a deferred tax liability?

Which of the following is NOT a source of support for the realization of a deferred tax asset?

Hagar Corporation reported depreciation of $250,000 on its 2014 tax return.However,in its 2014 income statement,Hagar reported depreciation of $100,000.The difference in depreciation is a temporary difference that will reverse over time.Assuming Hagar's tax rate is constant at 30 percent,what amount should be added to the deferred income tax liability in Hagar's December 31,2014,balance sheet?

Omega Company reported net incomes in 2013 and 2014 before sustaining a significant operating loss in 2015.All of the 2015 loss can be carried back against the income of 2013 and 2014 for purposes of determining the company's 2015 income tax liability.How should the carryback be presented in the company's 2015 financial statements?

Which of the following could never be subject to interperiod tax allocation?

Which of the following is an example of a temporary difference that could result in a deferred tax asset?

For the current year,Eastern Atlantic Company reported income tax expense of $21,000.Income taxes payable at the end of the prior year were $19,000 and at the end of the current year were $20,000.The deferred tax liability classified as noncurrent that resulted from the use of MACRS for tax purposes and straight-line depreciation for financial reporting purposes increased from $21,000 at the beginning of the current year to $23,000 at the end of the current year.How much cash was paid for income taxes during the year?

Which of the following items results in a temporary difference taxable amount for a given year?

The asset-liability method of interperiod tax allocation currently required by U.S.GAAP is an example of the

Historically,the United Kingdom has recognized only those deferred tax liabilities expected to "crystallize." The term "crystallize" is most nearly synonymous with the term

Grisoft Inc.computed a pretax financial income of $40,000 for the first year of its operations ended December 31,2014.Analysis of the tax and book basis of its liabilities disclosed $360,000 in unearned rent revenue on the books that had been recognized as taxable income in 2014 when the cash was received. The unearned rent is expected to be recognized on the books in the following pattern: The enacted tax rates for this year and the next four years are as follows: Use the provisions of FASB Statement No.109.

Which of the following situations would require interperiod income tax allocation procedures?