Question

Write the definitions and any other required information for the items below. Temporary Difference (give 3...

Write the definitions and any other required information for the items below.

Temporary Difference (give 3 examples of temporary differences)

Permanent Differences (give 3 examples of permanent differences)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Temporary Difference
This is expressed as temporary difference between carrying value of any balance sheet item as respect with its carrying value as per taxation provisions. These type of differences get reversed in future (they get eliminated over a period of time)
Example : Allowance for bad debts, Depriciation,expenses allowed on payment basis for example bonus to employees
Permanent Difference
This is expressed as permanent difference between carrying value of any balance sheet item as respect with its carrying value as per taxation provisions. These type of differences do not get reversed in future (they do not get eliminated at all)
Example : Disallowance for personal expense, disallowance of illegal expenditure, fine incurred by company
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Write the definitions and any other required information for the items below. Current Tax Expense (or...
Write the definitions and any other required information for the items below. Current Tax Expense (or Benefit) Deferred Tax Expense (or Benefit)
Write the definitions and any other required information for the items below. Deferred Tax Asset Valuation...
Write the definitions and any other required information for the items below. Deferred Tax Asset Valuation Allowance Deferred Tax Liability
What is the Difference between Moment of Force & Moment of an Axis? Please give definitions...
What is the Difference between Moment of Force & Moment of an Axis? Please give definitions of each and a clear "run down" of the differences including examples. Thanks!
The information that follows pertains to Julia Company: (a.) Temporary differences for the year 2016 are...
The information that follows pertains to Julia Company: (a.) Temporary differences for the year 2016 are summarized below. Expenses deducted in the tax return, but not included in the income statement: Depreciation        $57,000 Prepaid expense     7,700 Expenses reported in the income statement, but not deducted in the tax return: Warranty expense    8,700 (b.) No temporary differences existed at the beginning of 2016. (c.) Pretax accounting income was $63,700 and taxable income was $7,700 for 2016. (d.) There were no permanent differences....
For each item below, indicate whether it involves: (1) A temporary difference that will result in...
For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference. Use the appropriate number to indicate your answer for each. (a)____ Estimated losses on pending lawsuits and claims are accrued for books....
Identify and explain any items included in "other Information" that need not to be part of...
Identify and explain any items included in "other Information" that need not to be part of the auditor's report.
Exercise 16-22 (Algo) Multiple temporary differences; record income taxes [LO16-2, 16-3] The information that follows pertains...
Exercise 16-22 (Algo) Multiple temporary differences; record income taxes [LO16-2, 16-3] The information that follows pertains to Richards Refrigeration, Inc.: At December 31, 2021, temporary differences existed between the financial statement book values and the tax bases of the following: ($ in millions) Book Value Tax Basis Future Taxable (Deductible) Amount Buildings and equipment (net of accumulated depreciation) $ 128 $ 94 $ 34 Prepaid insurance 54 0 54 Liability—loss contingency 29 0 (29 ) No temporary differences existed at...
Write one difference for items below a.     char versus Character b.     Source code versus Byte code c.    Complier error...
Write one difference for items below a.     char versus Character b.     Source code versus Byte code c.    Complier error versus Runtime error d.   char [ ] versus String [ ]
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction...
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,604,000 $ 4,032,000 $ 1,940,400 Estimated costs to complete as of year-end 5,796,000 1,764,000 0 Billings during the year 2,040,000 4,596,000 3,364,000 Cash collections during the...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,204,000 $ 3,192,000 $ 2,424,400 Estimated costs to complete as of year-end 5,396,000 2,204,000 0 Billings during the year 2,140,000 3,256,000 4,604,000 Cash collections during the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT