Questions from Individual Taxation

Q: In addition to the current year tax return taxes payable or refundable

In addition to the current year tax return taxes payable or refundable, what other transactions can affect a company’s current income tax provision?

Q: What is an unrecognized tax benefit and how does it affect a

What is an unrecognized tax benefit and how does it affect a company’s current income tax expense?

Q: Harrison Corporation reported pretax book income of $600,000.

Harrison Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest....

Q: Identify the following items as creating a temporary difference, permanent difference

Identify the following items as creating a temporary difference, permanent difference, or no difference.

Q: Adams Corporation has total deferred tax assets of $3,000

Adams Corporation has total deferred tax assets of $3,000,000 at year-end. Management is assessing whether a valuation allowance must be recorded against some or all of the deferred tax assets. What l...

Q: Bevo Corporation experienced a complete loss of its mill as the result

Bevo Corporation experienced a complete loss of its mill as the result of a fire. The company received $2 million from the insurance company. Rather than rebuild, Bevo decided to distribute the $2 mil...

Q: List the four basic adjustments that a corporation makes to taxable income

List the four basic adjustments that a corporation makes to taxable income or net loss to compute current E&P. What is the rationale for making these adjustments?

Q: What income tax issues must a corporation consider before it makes a

What income tax issues must a corporation consider before it makes a noncash distribution to a shareholder?

Q: Tiny and Tim each own half of the 100 outstanding shares of

Tiny and Tim each own half of the 100 outstanding shares of Flower Corporation. This year Flower reported taxable income of $6,000 and was subject to a 25 percent tax rate. In addition, Flower receive...

Q: Blackhawk Company reports current E&P of negative $300,

Blackhawk Company reports current E&P of negative $300,000. Its accumulated E&P at the beginning of the year was a negative $200,000. Blackhawk distributed $400,000 to its sole shareholder, Melanie Ru...