50.1K

Verified Solution

Link Copied!

Complete the following statements by filling in the blanks.

a$.$ In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be $$ pretax financial income.

b$.$ If a $$39,450$ balance in Deferred Tax Asset was computed by use of a $20\%$ rate, the underlying cumulative temporary difference amounts to $ $$

c$.$ Deferred taxes $$ recorded to account for permanent differences.

d$.$ If a taxable temporary difference originates in $2025,$ it will cause taxable income for $2025$ to be $$ pretax financial income for $2025.$

e$.$ If total tax expense is $$64,200$ and deferred tax expense is $$50,700,$ then the current portion of the expense computation is referred to as current tax $$ of $

$.$ If a corporation's tax return shows taxable income of $$104,000$ for $Y$ ear $2$ and a tax rate of $20\%,$ how much will appear on the December $31,$ Year $2,$ balance sheet for "Income taxes payable" if the company has made estimated tax payments of $$17,950$ for Year $2?$ $ $$

g$.$ An increase in the Deferred Tax Liability account on the balance sheet is recorded by a $$ to the Income Tax Expense account.

h$.$ An income statement that reports current tax expense of $$82,600$ and deferred tax benefit of $$23,800$ will report total income tax expense of $ $$

A valuation account is needed whenever it is judged to be $$ that a portion of a deferred tax asset

$$ realized.

If the tax return shows total taxes due for the period of $$74,900$ but the income statement shows total income tax expense of $$56,800,$ the difference of $$18,100$ is referred to as deferred tax $$

Answer & Explanation Solved by verified expert

See Answer