Firms recognize deferred tax assets only to the extent that they expect to generate sufficient taxable income to realize the assets in the form of tax savings in the future. U.S. GAAP requires use of a deferred _____ to reduce the balance in the _____ account to the amount the firm expects to realize in tax savings in the future
a. tax asset valuation allowance; Deferred Tax Asset
b. tax expense; Deferred Tax Asset
c. tax asset valuation allowance; Deferred Tax Liability
d. tax expense; Deferred Tax Liability
e. tax expense; Deferred Tax Revenue
A
You might also like to view...
A who-did-what violation is sometimes called a(n) _____
Fill in the blank(s) with correct word
Which of the following is an example of breach of fiduciary duty?
A) The directors of a corporation refuse to give a pay raise to the employees although they have not received one for five years. B) A director makes a profit of $120,000 from a contract between the corporation and a firm in which he has an interest after he has made full disclosure of his interest to the board of directors and abstained from the vote on the contract. C) An officer of a corporation learns of a business opportunity intended for the company and intercepts it for his own benefit D) The directors refuse to declare dividend contrary to a request by its preferred shareholders. E) A shareholder owning 2% of the outstanding shares starts a business in direct competition with a corporation in which he holds shares.
Andrew and Jennifer are in the 25% marginal tax bracket. Three years ago they purchased 100 shares of stock at $20 a share. In 2015, they sold the 100 shares for $29 a share
What is the amount of federal income tax they owe as a result of this sale? A) $135 B) $165 C) $225 D) $435
The ethical dilemma in the TransWays' case can best be described as:
A. The Director of International Accounting questions the revenue recognition for oil drilling overseas B. Gross negligence on behalf of the auditors to account for oil inventory C. The external auditors are being blocked by the client in attempting to verify accounting treatment of oil drilling services D. Whether payments made to customs officials are can be properly recorded as facilitating payments