Questions from Individual Taxation

Q: Which of the following temporary differences creates a current deferred tax asset

Which of the following temporary differences creates a current deferred tax asset? a. Allowance for bad debts b. Goodwill amortization c. Accumulated depreciation d. Inventory capitalization under §26...

Q: Which formula represents the calculation of a company’s effective tax rate?

Which formula represents the calculation of a company’s effective tax rate? a. Income taxes paid / Taxable income. b. Income taxes paid / Pretax income from continuing operations. c. Income tax provis...

Q: Which of the following items is not a reconciling item in the

Which of the following items is not a reconciling item in the income tax footnote? a. State income taxes b. Foreign income taxes c. Accrued pension liabilities d. Dividends received deduction e. Tax-e...

Q: Which of the following pronouncements should a company consult in computing its

Which of the following pronouncements should a company consult in computing its quarterly income tax provision? a. ASC 740 b. ASC 230 c. ASC 718 d. ASC 810 e. SarbOX 404

Q: Which of the following taxes is not accounted for under ASC 740

Which of the following taxes is not accounted for under ASC 740? a. Income taxes paid to the U.S. government. b. Income taxes paid to the French government. c. Income taxes paid to the city of Detroit...

Q: Which of the following organizations can issue rules that govern accounting for

Which of the following organizations can issue rules that govern accounting for income taxes? a. FASB b. SEC c. IRS d. a and b above e. All of the above organizations

Q: Find the paragraph(s) in ASC 740 that deal with

Find the paragraph(s) in ASC 740 that deal with the following items (you can access ASC 740 on the FASB website at http://www.fasb.org, and clicking on “Standards.” You will need a password from your...

Q: Woodward Corporation reported pretax book income of $1,000,

Woodward Corporation reported pretax book income of $1,000,000. Included in the computation were favorable temporary differences of $200,000, unfavorable temporary differences of $50,000, and favora...

Q: Cass Corporation reported pretax book income of $10,000,

Cass Corporation reported pretax book income of $10,000,000. During the current year, the reserve for bad debts increased by $100,000. In addition, tax depreciation exceeded book depreciation by $20...

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

Grand 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....