Income-tax-basis financial statements differ from those prepared under GAAP because they

** D. Recognize certain revenues and expenses in different reporting periods.

The relationship between income tax currently payable and income tax expense is that income tax currently payable

** D. May differ from income tax expense.

When accounting for income taxes, a temporary difference occurs in which of the following scenarios?

** B. An item is included in the calculation of net income in one year and in taxable income in a different year.

A deferred tax asset must be reduced by a valuation allowance if it is

**C. More likely than not that some portion will not be realized.

A tax rate other than the current tax rate may be used to calculate the deferred income tax amount on the statement of financial position if a(n)

**A. Future tax rate has been enacted into law.

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income taxes

Question	Answer
Income-tax-basis financial statements differ from those prepared under GAAP because they	** D. Recognize certain revenues and expenses in different reporting periods.
The relationship between income tax currently payable and income tax expense is that income tax currently payable	** D. May differ from income tax expense.
When accounting for income taxes, a temporary difference occurs in which of the following scenarios?	** B. An item is included in the calculation of net income in one year and in taxable income in a different year.
Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, its first year of operations:	**C. $6,000
A deferred tax asset must be reduced by a valuation allowance if it is	**C. More likely than not that some portion will not be realized.
Black Co., organized on January 2	**C. $90,000 $0
A tax rate other than the current tax rate may be used to calculate the deferred income tax amount on the statement of financial position if a(n)	**A. Future tax rate has been enacted into law.
Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, its first year of operations:	**B. $56,000
Lion Co.’s income statement for its first year of operations shows pretax income of $6,000,000	**C. $104,000
Brass Co. reported income before income tax expense of $60,000 for Year 2	**A. $12,000

Created by: melissaaaa

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