Which of the following transactions would typically result in the creation of a deferred tax liability?
A) Rents received in advance are taxable when received but are not recognized in pretax financial income until earned.
B) Gross profit on installment sales is recognized currently in pretax financial income but is not taxable for income tax purposes until cash is received.
C) Losses recognized in pretax accounting income from an investment in a subsidiary are accounted for by the equity method but not deductible for income tax purposes until the investment is sold.
D) A contingent liability is recognized as an expense currently in pretax financial income but not deductible for income tax purposes until paid.
B
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Chase Company rents space to a tenant for $2,200 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. The adjusting entry needed on December 31 is:
A. Debit Unearned Rent, $2,200; credit Rent Earned, $2,200. B. Debit Rent Receivable, $4,400; credit Rent Earned, $4,400. C. Debit Rent Receivable, $2,200; credit Rent Earned, $2,200. D. Debit Unearned Rent, $4,400; credit Rent Earned, $4,400. E. Debit Rent Receivable, $6,600; credit Rent Earned, $6,600.
Which is a benefit of finding a calling?
A. fosters perseverance B. equips us for service to others C. increases personal sense of satisfaction D. all of these
Revenues is the difference between cash receipts and cash payments
Indicate whether the statement is true or false
The after-tax benefit of a taxable cash receipt can be calculated as follows:
A) After-tax benefit = Pretax receipt x tax rate B) After-tax benefit = Pretax receipt x (1 - tax rate) C) After-tax benefit = Pretax receipt x (1 + tax rate) D) After-tax benefit = Pretax receipt ΒΈ tax rate