ch19income tax.docx

1、ch19income taxCHAPTER 19ACCOUNTING FOR INCOME TAXESIFRS questions are available at the end of this chapter.TRUe-FALSeConceptualAnswer No. Description F 1. Taxable income. F 2. Use of pretax financial income. T 3. Taxable amounts. T 4. Deferred tax liability. F 5. Deductible amounts. T 6. Deferred ta

2、x asset. F 7. Need for valuation allowance account. T 8. Positive and negative evidence. F 9. Computation of income tax expense. T 10. Taxable temporary differences. F 11. Taxable temporary difference examples. T 12. Permanent differences. T 13. Applying tax rates to temporary differences. F 14. Cha

3、nge in tax rates. F 15. Accounting for a loss carryback. T 16. Tax effect of a loss carryforward. T 17. Possible source of taxable income. T 18. Classification of deferred tax assets and liabilities. F 19. Classification of deferred tax accounts. F 20. Method used for accounting for income taxes.Mul

4、tiple ChoiceConceptualAnswer No. Description b 21. Differences between taxable and accounting income. c 22. Differences between taxable and accounting income. b 23. Determination of deferred tax expense. a 24. Differences arising from depreciation methods. a P25. Temporary difference and a revenue i

5、tem. b S26. Effect of future taxable amount. c P27. Causes of a deferred tax liability. d S28. Distinction between temporary and permanent differences. b S29. Identification of deductible temporary difference. c S30. Identification of taxable temporary difference. d S31. Identification of future tax

6、able amounts. c 32. Identify a permanent difference. d 33. Identification of permanent differences. d 34. Identification of temporary differences. d 35. Difference due to the equity method of investment accounting. b 36. Difference due to unrealized loss on marketable securities. a 37. Identificatio

7、n of deductible temporary differences. d 38. Identification of temporary difference.Multiple ChoiceConceptual (cont.)Answer No. Description c S39. Accounting for change in tax rate. c 40. Appropriate tax rate for deferred tax amounts. b 41. Recognition of tax benefit of a loss carryforward. a 42. Re

8、cognition of valuation account for deferred tax asset. d 43. Definition of uncertain tax positions. c 44. Recognition of tax benefit with uncertain tax position. d 45. Reasons for disclosure of deferred income tax information. c 46. Classification of deferred income tax on the balance sheet. b 47. C

9、lassification of deferred income tax on the balance sheet. d 48. Basis for classification as current or noncurrent. d 49. Income statement presentation of a tax benefit from NOL carryforward. c S50. Classification of a deferred tax liability. c 51. Procedures for computing deferred income taxes.P Th

10、ese questions also appear in the Problem-Solving Survival Guide.S These questions also appear in the Study Guide.*This topic is dealt with in an Appendix to the chapter.Multiple ChoiceComputationalAnswer No. Description c 52 Calculate book basis and tax basis of an asset. b 53. Calculate deferred ta

11、x liability balance. a 54. Calculate current/noncurrent portions of deferred tax liability. a 55. Calculate income tax expense for the year. d 56. Calculate amount of deferred tax asset to be recognized. c 57. Calculate current deferred tax liability. b 58. Determine income taxes payable for the yea

12、r. d 59. Calculate amount of deferred tax asset to be recognized. c 60. Calculate current/noncurrent portions of deferred tax liability. d 61. Calculate amount deducted for depreciation on the tax return. b 62. Calculate amount of deferred tax asset to be recognized. d 63. Calculate deferred tax ass

13、et with temporary and permanent differences. a 64. Calculate amount of DTA valuation account. a 65. Calculate current portion of provision for income taxes. a 66. Calculate deferred portion of income tax expense. c 67. Computation of total income tax expense. a 68. Calculate installment accounts rec

14、eivable. b 69. Computation of pretax financial income. a 70. Calculate deferred tax liability amount. a 71. Calculate income tax expense for the year. d 72. Calculate income tax expense for the year. b 73. Computation of income tax expense. c 74. Computation of income tax expense. d 75. Computation

15、of warranty claims paid. b 76. Calculate taxable income for the year. d 77. Calculate deferred tax asset amount. b 78. Calculate deferred tax liability balance. b 79. Calculate income taxes payable amount.Multiple ChoiceComputational (cont.)Answer No. Description a 80. Calculate deferred tax asset a

16、mount. b 81. Calculate taxable income for the year. b 82. Calculate pretax financial income. a 83. Calculate deferred tax liability with changing tax rates. c 84. Calculate deferred tax liability amount. d 85. Calculate income tax expense with changing tax rates. b 86. Determine change in deferred t

17、ax liability. b 87. Calculate deferred tax liability with changing tax rates. d 88. Calculate loss to be reported after NOL carryback. d 89. Calculate loss to be reported after NOL carryback. b 90. Calculate loss to be reported after NOL carryforward. a 91. Determine income tax refund following an N

18、OL carryback. a 92. Calculate income tax benefit from an NOL carryback. d 93. Calculate income tax payable after NOL carryforward. c 94. Calculate deferred tax asset after NOL carryforward.Multiple ChoiceCPA AdaptedAnswer No. Description a 95. Determine current income tax liability. a 96. Determine

19、current income tax liability. c 97. Deferred tax liability arising from depreciation methods. d 98. Deferred tax liability when using equity method of investment accounting. d 99. Calculate deferred tax liability and income taxes currently payable. b 100. Determine current income tax expense. a 101.

20、 Deferred income tax liability from temporary and permanent differences. a 102. Deferred tax liability arising from installment method. c 103. Differences arising from depreciation and warranty expenses. c 104. Deferred tax asset arising from warranty expenses.Exercises Item Description E19-105 Comp

21、utation of taxable income. E19-106 Future taxable and deductible amounts (essay). E19-107 Deferred income taxes. E19-108 Deferred income taxes. E19-109 Recognition of deferred tax asset. E19-110 Permanent and temporary differences. E19-111 Permanent and temporary differences. E19-112 Temporary diffe

22、rences. E19-113 Operating loss carryforward.PROBLEMS Item Description P19-114 Differences between accounting and taxable income and the effect on deferred taxes. P19-115 Multiple temporary differences. P19-116 Deferred tax asset. P19-117 Interperiod tax allocation with change in enacted tax rates.CH

23、APTER LEARNING OBJECTIVES 1. Identify differences between pretax financial income and taxable income. 2. Describe a temporary difference that results in future taxable amounts. 3. Describe a temporary difference that results in future deductible amounts. 4. Explain the purpose of a deferred tax asse

24、t valuation allowance. 5. Describe the presentation of income tax expense in the income statement. 6. Describe various temporary and permanent differences. 7. Explain the effect of various tax rates and tax rate changes on deferred income taxes. 8. Apply accounting procedures for a loss carryback an

25、d a loss carryforward. 9. Describe the presentation of deferred income taxes in financial statements. 10. Indicate the basic principles of the asset-liability method. *11. Understand and apply the concepts and procedures of interperiod tax allocation.SUMMARY OF LEARNING OBJECTIVES BY QUESTIONSItemTy

26、peItemTypeItemTypeItemTypeItemTypeItemTypeItemTypeLearning Objective 11.TF21.MC23.MC96.MC114.P116.P2.TF22.MC95.MC105.E115.PLearning Objective 23.TFP25.MC54.MC97.MC107.E115.P4.TF52.MC55.MC98.MC108.E116.P24.MC53.MC58.MC106.E114.PLearning Objective 35.TF59.MC63.MC108.E114.P6.TF61.MC106.E109.E115.P56.MC

27、62.MC107.E113.E116.PLearning Objective 47.TF8.TF64.MCLearning Objective 59.TF65.MC67.MC100.MCS26.MC66.MC99.MC113.ELearning Objective 610.TFS29.MC34.MC68.MC73.MC78.MC110.E11.TFS30.MC35.MC69.MC74.MC79.MC111.E12.TFS31.MC36.MC70.MC75.MC80.MC112.EP27.MC32.MC37.MC71.MC76.MC81.MC114.PS28.MC33.MC38.MC72.MC7

28、7.MC82.MC116.PLearning Objective 713.TFS39.MC83.MC85.MC87.MC14.TF40.MC84.MC86.MC117.PLearning Objective 815.TF17.TF42.MC89.MC91.MC93.MC113.E16.TF41.MC88.MC90.MC92.MC94.MCLearning Objective 918.TF44.MC47.MCS50.MC100.MC103.MC19.TF45.MC48.MC57.MC101.MC104.MC43.MC46.MC49.MC60.MC102.MC116.PLearning Objec

29、tive 1020.TF51.MC Note: TF = True-False MC = Multiple Choice E = Exercise P = ProblemTRUE-FALSEConceptual 1. Taxable income is a tax accounting term and is also referred to as income before taxes. 2. Pretax financial income is the amount used to compute income tax payable. 3. Taxable amounts increase taxable income in future years. 4. A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current yea