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Self study - b differs from accounting income due to...

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b. differs from accounting income due to differences in interperiod allocation and Sultangubiyeva Aibobek 20072565 permanent differences between the two methods of income determination. 22 Taxable income of a corporation differs from pretax financial income because of c. Yes Yes a. tax expense shown on the income statement to equal the amount of income taxes payable for the current year plus or minus the change in the deferred tax asset or liability balances for the year. b. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. a. recognize a tax asset or liability for the tax consequences of temporary differences that exist at the balance sheet date. d. the amount of deferred tax consequences attributed to temporary differences that result in net taxable amounts in future years. c. A temporary difference exists at the balance sheet date because the tax basis of an asset or liability and its reported amount in the financial statements differ d. differences between net income for tax purposes and financial reporting occur because, even though financial accounting principles and tax laws concur on the item to be recognized as revenues and expenses, they don't concur on the timing of the recognition. b. statutory (or percentage) depletion exceeds cost depletion for the period. 30. Machinery a. Yes Yes P31. A temporary difference arises when a a. Yes Yes b. Garth will record a decrease in a deferred tax liability in 2008. c. items II and III only d. temporary differences reverse themselves in subsequent accounting periods, whereas permanent differences do not reverse. b. Product warranty liabilities. c. An installment sale accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes. d. Expenses or losses that are tax deductible before they are recognized in financial income. c. a fine resulting from violations of OSHA regulations. d. all of these. d. All of these will result in a temporary difference. 41. A company uses the equity method to account for an investment d. Temporary Liability 42. A company records an unrealized loss on short-term securities. b. Temporary Asset c. reported as an adjustment to tax expense in the period of change.
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