1 answer

Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they...

Question:

Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred       tax liabilities.

1.Interest is received on an investment in tax-exempt governmental obligations.

2. For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets’ lives are shorter for tax purposes.

3. The tax return reports a deduction for 80% of the dividends received from various corporations. The cost method is used in accounting for the related investments for financial reporting purposes.


Answers

1 Interest is received on an investment in tax-exempt governmental obligations. PERMANENT This is tax exempt, soit will never be taxable, hence permanent difference
2 For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets’ lives are shorter for tax purposes. TEMPORARY Liability because higher depreciation is allowed for tax purpose. Sooner or later the Net Value of asset will be equal
3 The tax return reports a deduction for 80% of the dividends received from various corporations. The cost method is used in accounting for the related investments for financial reporting purposes. PERMANENT Tax reports allow a deduction. This deduction will never be considered an income so it is a permanent difference
.

Similar Solved Questions

1 answer
Please show all work
please show all work...
1 answer
Case Study, Chapter 7, Overview of Transcultural Nursing 1. Mrs. Perez, 32 years of age, is...
Case Study, Chapter 7, Overview of Transcultural Nursing 1. Mrs. Perez, 32 years of age, is a Hispanic patient who is admitted for early stage cancer of the uterus. The surgeon stated that in order to treat Mrs. Perez's cancer successfully, the uterus will need to be removed surgically through a...
1 answer
Predict the product(s) for each reaction sequence below. a m PhP cuncunu ondoreng CH3CH2CH2CH2Li CH,OCH,CHz ether
Predict the product(s) for each reaction sequence below. a m PhP cuncunu ondoreng CH3CH2CH2CH2Li CH,OCH,CHz ether...
1 answer
Read the following scenario: J.T. has injured his hand at work and is accompanied to the...
Read the following scenario: J.T. has injured his hand at work and is accompanied to the emergency department (ED) by a co-worker. You examine his left hand and find a piece of a drill bit sticking out of the skin between the third and fourth knuckles. There is another puncture site about an inch be...
1 answer
How do you write the following as an algebraic expression using x as the variable: Seventy three times a number subtracted from nine hundred fifty minus ten?
How do you write the following as an algebraic expression using x as the variable: Seventy three times a number subtracted from nine hundred fifty minus ten?...
1 answer
Assume that 28.0mL of a 0.10 M solution of a weak base B that accepts one proton is titrated with a 0.10 M solution of...
Assume that 28.0mL of a 0.10 M solution of a weak base B that accepts one proton is titrated with a 0.10 M solution of the monoprotic strong acid HA. A.) How many moles of HA have been added at the equivalence point? B.) What is the predominant form of B at the equivalence point? BA (aq), B(aq), BA-...
1 answer
Answer all questions on this page!! B. It hyperpolarizes the membrane C. t changs he membrane...
Answer all questions on this page!! B. It hyperpolarizes the membrane C. t changs he membrane potenatal suh ht voltage-gated Kchambed Na channels are D. It releases calcium from intracellular stores 36. Compared to the cy toplasm, which of the following is generally true about the lumen of the e...
1 answer
Use the picture below to determine the radius of the off ramp from the 405 to the 105. If the rec...
Use the picture below to determine the radius of the off ramp from the 405 to the 105. If the recommended speed of the turn is 45 mi/hr (convert to m/s), what is the angle the turn is banked so that friction is not needed to keep the car from sliding towards the outside of the ramp? The off ramp is ...
1 answer
Which do you think is a better buffer (more resistant to addition of acid and base)?...
Which do you think is a better buffer (more resistant to addition of acid and base)? a solution that is 0.1M in HA and 0.01M in A a solution that is 0.01M in HA and 0.1M in A a solution that is 0.1M in HA and 0.1M in A a solution that is 0.05M in HA and 0.05M in A...
1 answer
A bicycle wheel of radius 37 cm rolls a distance of 3.0 km. How many revolutions...
A bicycle wheel of radius 37 cm rolls a distance of 3.0 km. How many revolutions does the wheel make during this journey? 12736 Incorrect. Tries 2/5 Previous Tries Submit Answer Post Discussion...
1 answer
How do you solve the following system: # 3x – y = 28 , 2x+5y=-1 #?
How do you solve the following system: # 3x – y = 28 , 2x+5y=-1 #?...
1 answer
The following supply and demand functions describe the competitive market Q2+4P Q40-2P where Q and Q"...
The following supply and demand functions describe the competitive market Q2+4P Q40-2P where Q and Q" are the quantities supplied and demanded, and P is the market price. (a) What are the equilibrium price, P, and quantity, Q"? (b) Compute the producer and consumer surplus that results from ...
1 answer
Discuss the effects of diet on health concerning at risk population
discuss the effects of diet on health concerning at risk population...
1 answer
2 A production department in a process manufacturing system completed its work on 86,000 units of...
2 A production department in a process manufacturing system completed its work on 86,000 units of product and transferred them to the next department during a recent period. Of these units, 25,800 were in process at the beginning of the period. The other 60,200 units were started and completed durin...
1 answer
For each of the reactions shown, draw the structure for the missing reactant, reagent, or product...
For each of the reactions shown, draw the structure for the missing reactant, reagent, or product KMnO4 HO O SOCI pyridine ci 1. LiAlH4 2. H30+ PCC OH NaNH -ОН 1.2. Mgl, ether HO 2. H30...
1 answer
6. (23 pts.) Given: cos(°/2) = -1/4 and "/2</2<311/4. Form a right triangle with the given...
6. (23 pts.) Given: cos(°/2) = -1/4 and "/2</2<311/4. Form a right triangle with the given information. Determine the following and report all numerical answers in exact form. Report angles to two decimal places. a. (02 pts.) The missing side b. (03 pts.) sin(°/2 c. (03 pts.) tanc&...
1 answer
Greg and Sue are married with two children under the age of 10 that are their...
Greg and Sue are married with two children under the age of 10 that are their only dependents. They are both 45 years of age and filing jointly. They had combined California gross income of $64,500. Which of the following is true about their filing requirement in California? A. On the basis of gross...
1 answer
Compute the return on assets (ROA) for La Verne Company using end-of-year assets in your calculation....
Compute the return on assets (ROA) for La Verne Company using end-of-year assets in your calculation. Total revenue $250,000 Total expenses $190,000 Total assets $400,000...