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You can't income tax is based on TAXABLE income, not financial statement income.

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16y ago

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Related Questions

How do you calculate income tax on a budgeted income statement?

You divide the percent of tax to your total and you will get your answer


How you Calculate Provision for Income tax?

how to calculate provison for income tax


What is the difference between income tax expense and income tax payable?

Income statement & balance sheet.


How do you calculate tax deductions for your income?

To calculate tax deductions for your income, you can subtract eligible expenses and deductions from your total income. This reduced amount is then used to determine the amount of tax you owe.


Where does income tax liability go on the cash flow statement?

income tax liability is not part of cash flow statement rather it is part of balance sheet.


How do you calculate pretax net operating income?

How do you calculate pre-tax net operating income


Where can I learn how to calculate my income tax?

H & R Block has a tax calculator that will help you calculate your income tax. You can also visit the IRS's website and there they will be able to help you find out.


Is income tax a current liability or an expense?

Accrued income tax (Income Tax Payable) is a current liability. When the tax is actually paid it is reported on the income statement as Income Tax Expense.


How do you calculate taxes for your income?

To calculate taxes for your income, you need to determine your taxable income by subtracting any deductions or exemptions from your total income. Then, use the tax brackets provided by the government to find the percentage of tax you owe based on your taxable income. Finally, multiply your taxable income by the tax rate to calculate the amount of taxes you owe.


Describe the diffferences between financial statement income and taxable income?

There is some difference in financial statement income as well as taxable income as in financial statement income there are items which are not allowed by tax authorities and main item is depreciation. Other factors are that tax is deducted on income which is received while in financial statement income included revenue which is not received or accrual items that needs to be adjusted as well that's why financial statement income and taxable income is not same.


What formula do you use to calculate income tax?

To calculate income tax, one should sum up the totals of all the taxable income and subtract from it the personal allowance and any other tax free allowances. After that, one should apply the rate of tax on the resultant value to find out the income tax payable.


The result of interperiod tax allocation is that?

The income tax expense on the income statement is the sum of the income taxes payable for the year and the changes in deferred tax asset or liability balances for the year.