FinAcct - Income Tax

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  1. What is the conceptual challenge regarding income tax accounting?
    - Income tax expense (taxes on revenues and expenses shown in income statement) differs from taxes payable.
  2. What might the journal entry look like for income taxes?
    - Simply measure income tax expense and liabilities

    • Debit - Income Tax Expense
    • Credit - Income Tax Payable
  3. Why are there differences between Book Income and Taxable Income?
    Because Book Income and Taxable Income are measured using different principles

    • - Depreciation
    • - Prepaid Rent
    • - Life Insurance Proceeds
    • - Municipal Bond Interest
    • - Fines and Penalties
  4. What are the differences between Financial Accounting and Tax Law objectives?
    1. Permanent Differences

    2. Temporary or Timing Difference
  5. What are the items that will have permanent differences between tax and book?
    • 1. Municipal Bond Interest
    • 2. Life Insurance Proceeds
    • 3. Fines and Penalties
  6. What the items that have Temporary or Timing differences between book and taxable income?
    • 1. Depreciation
    • 2. Prepaid Rent
    • 3. Pollution Control Equipment Amortization
    • 4. Certified Historic Structures: Demolition
Card Set:
FinAcct - Income Tax
2011-12-07 16:12:48
TBird EMBA XXI Dale Davidson Financial Accounting Income Taxes

This is a card set that focuses on income taxes found in Session 14
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