When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is increased. TRUE OR FALSE
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When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is increased.
TRUE OR FALSE
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- 1. Deferred tax expense or benefit is the net change in DTL and DTA for the period. If the increase in D.TL exceeds the increase in DTA, the difference is a deferred tax expense. 2. When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is increased True or FalseDifference between tax deduction and tax credit. Give example of each. Some tax credits are referred to as refundable. What does this mean? Declining balance method of CCA?An example of interperiod income tax allocation is reporting discontinued operations, net of tax. O True O False
- In a regressive tax system, as taxable income increases, the effective tax rate decreases ◻ True False1) Non-assessable income does not increase tax liability, but tax-free income increases tax liability- Discuss with example. Need more explanation .Why is the income taxpayable not the same as income tax expense? please answer in your own words.
- Please answer with valid reason True or False In general Before Tax IRR should be lower than After Tax IRR. (T/F)Deferred tax liabilities should be treated as equity when:A . they are not expected to reverse.B . the timing of tax payments is uncertain.C . the amount of tax payments is uncertain.TRUE OR FALSE? An excess tax depreciation will result to a deferred tax liability.
- A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross income? c. reduce tax owed after tax has been determined?). Another purpose of an adjustment to income is to (option: a. help determine adjusted gross income? b. calculate taxable income after agi has been determined? c. be subtracted after agi to help determine taxable income?)Net income after tax is: The difference of financial income and total deferred income tax expense. The difference of taxable income and current income tax expense. The financial income less any current income tax expense add any income tax benefit. Cannot be determined.the process of reducing the allowable deduction of interest expense by a certain percentage is called? a) tax arbitrage b) tax minimization c) tax avoidance d) tax limitation