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Why does a company report deferred income taxes as part of its total income tax expense?
Wiki User
∙ 16y ago
Under the matching and periodicity principles, expenses are matched to the income they produce within a period. There are a number of differences between accounting profit and taxable profit (probably the largest and most common being depreciation methods). The affect of those differences are often spread over a number of years, which makes matching income tax expense to a period's income difficult. Deferred income tax computations are intended to match a period's income tax expense to its book profit. As a note, in general only very large companies make provisions on their financial statements for deferred income taxes.
Wiki User
∙ 16y ago
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How do you calculate the Bad Debt Expense on the income statement report?
credit the account receivable and debit the bad debt expense.
Is depreciation on balance sheet or income statement?
Depreciation on the income statement is the amount of depreciation expense that is appropriate for the period of time indicated in the heading of the income statement. The depreciation reported on the balance sheet is the accumulated or the cumulative total amount of depreciation that has been reported as expense on the income statement from the time the assets were acquired until the date of the balance sheet.Let’s illustrate the difference with an example. A company has only one depreciable asset that was acquired three years ago at a cost of $120,000. The asset is expected to have a useful life of 10 years and no salvage value. The company uses straight-line depreciation on its monthly financial statements. In the asset’s 36th month of service, the monthly income statement will report depreciation expense of $1,000. On the balance sheet dated as of the last day of the 36th month, accumulated depreciation will be reported as $36,000. In the 37th month, the income statement will report $1,000 of depreciation expense. At the end of the 37th month, the balance sheet will report accumulated depreciation of $37,000.
Which section of the income statement does not report net of income taxes or net of income?
Trading account statement does not report net of income taxes or net of income.
You earned 50.00 from one company do you have to claim it on your taxes?
The answer to this question is yes. All income is to be reported on your tax return. The company who paid you is only required to send you a 1099 form if your income is above $600 but even if you don't get a 1099, that does not relieve you from your requirement to report all income and to pay taxes on this income.
If you have two different jobs do you have to file your tax return together?
Yes, you ae to report all your items of income and expense for the year on one filing. Intentionally omitting income is a crime, and the IRS would be likely to consider you tried to defraud.... a bad thing.
How do you calculate the Bad Debt Expense on the income statement report?
credit the account receivable and debit the bad debt expense.
How are deferred tax assets and deferred tax liabilities derived?
Basically, the book tax provision has 2 part - current (what you will pay this year) and deferred (what you will pay in some other period. It is determined using the financial book income. (Yes, there are some things, called "permanent" differences which are past this discussion). Tax accounting uses different conventions and requirements to determine what "income" is TAXABLE income. So for example, while financial accounting may require a company record an expense for bad debts - using some basis, (perhaps it's past history that some percent of sales are never collected) and that reduces book income that year - tax has a different set of requirements - which says that the expense CANNOT be recoded until it is absolutely realized (an "all events" test, not just an estimate) has been met. So while over the years, the amount of bad debt (reducing income) may be very, very similar - when it happens is different. So, while the book provision, using book income, records a total tax expense that year which incorporates the booked estimate of bad debt, since tax will not report that expense until a later period and will pay the tax on that income until the tax expense is recorded, the total provision (current + deferred) carries that until tax "catches up" to books (in this case.) These differences can go either way, and therefore produce a deferred tax asset (something you paid tax on - recognized as income for tax before book, or a deferred tax liability (where say books allowed an expense before tax (as in the above)). The net position (having a deferred asset or liability) is what is commonly shown on financial statements, although depending on the level of presentation, there may be one line for each - with detail of at least the major items causing the differences, someplace else in the statements.
Is depreciation on balance sheet or income statement?
Depreciation on the income statement is the amount of depreciation expense that is appropriate for the period of time indicated in the heading of the income statement. The depreciation reported on the balance sheet is the accumulated or the cumulative total amount of depreciation that has been reported as expense on the income statement from the time the assets were acquired until the date of the balance sheet.Let’s illustrate the difference with an example. A company has only one depreciable asset that was acquired three years ago at a cost of $120,000. The asset is expected to have a useful life of 10 years and no salvage value. The company uses straight-line depreciation on its monthly financial statements. In the asset’s 36th month of service, the monthly income statement will report depreciation expense of $1,000. On the balance sheet dated as of the last day of the 36th month, accumulated depreciation will be reported as $36,000. In the 37th month, the income statement will report $1,000 of depreciation expense. At the end of the 37th month, the balance sheet will report accumulated depreciation of $37,000.
Can you report as investment income accrued dividends from a subsidiary company?
yes
What is the income of a CEO?
The income of the CEO depends on the company, region, qualifications, experience, etc Suggest you check the company's annual report for exact salary details.
When you have completed an expense report. how can you let your manager know that the expense report is ready for review and or approval?
Some managers want to see the hard copy and receipts, and others want it electronically. Check with your manager to see what they prefer, or what the company policy is.
When you have completed your expense report how can you let your manager know that the expense report is ready for review and or approval?
Some managers want to see the hard copy and receipts, and others want it electronically. Check with your manager to see what they prefer, or what the company policy is.
How will a deferred payment look on your credit?
If it is a student loan, there will be a statement on the credit report. It will also show the date that payments were deferred.
How do you check the status of a share report you selected to run as deferred?
Access the shared reports function, then select Deferred Status from the Utilities menu.
How do you check the status of a shared report you selected to run as deferred?
Access the shared reports function, then select Deferred Status from the Utilities menu.
What amount of net income would Kwon Company report on its 2012 income statement?
we dont understand your question. once if you make the statement then you will get net profit.
Which section of the income statement does not report net of income taxes or net of income?
Trading account statement does not report net of income taxes or net of income.
