Which of the following statements about tax expense per books or tax payable is false? Select one:
a. Tax payable is calculated by multiplying taxable income by the applicable tax rate.
b. Tax expense is calculated by multiplying pretax book income by the applicable tax rate.
c. Tax expense per books and tax payable are calculated from the same rate schedule
d. Tax expense per books must to be added back on the M-1 in reconciling pretax book income to taxable income.
Income tax expense" is what you've calculated that our company owes in taxes based on standard business accounting rules. You report this expense on the income statement. "Income tax payable" is the actual amount that your company owes in taxes, based on the rules of the tax code. Income tax payable appears on the balance sheet as a liability until your company pays the tax bill.
Tax expense per books and tax payable or not collected from the same rate schedule
Answer : Option C
Get Answers For Free
Most questions answered within 1 hours.