Question

a. The portion of income taxes expense that is deferred to future tax returns is credited to a noncurrent asset account entitled Deferred Income Taxes

TRUE OR FALSE

b. A corporation, like a partnership, must file a corporate income tax return and pay tax on its earnings

TRUE OR FALSE

c. For an individual taxpayer, the federal income tax rate on ordinary income is at least as high as the rate on capital gains

TRUE OR FALSE

D. Deferred tax asset (liability) is resulted from an adjustment from financial income to determine the taxable incomr and the adjustment is a permanent asjustment (will not reverse).

TRUE OR FALSE

E. For C corporations, there id no difference in the federal income tax benefit between ordinary income and capital gains since both types of income are taxed at the same federal income tax rare

TRUE OR FALSE

Answer 1

a. The portion of income taxes expense that is deferred to future tax returns is credited to a noncurrent asset account entitled Deferred Income Taxes

FALSE

b. A corporation, like a partnership, must file a corporate income tax return and pay tax on its earnings

FALSE

c. For an individual taxpayer, the federal income tax rate on ordinary income is at least as high as the rate on capital gains

FALSE

D. Deferred tax asset (liability) is resulted from an adjustment from financial income to determine the taxable incomr and the adjustment is a permanent asjustment (will not reverse).

FALSE

E. For C corporations, there is no difference in the federal income tax benefit between ordinary income and capital gains since both types of income are taxed at the same federal income tax rate

TRUE