CHAPTER 19 Accounting for Income Taxes

CHAPTER 19

Accounting for Income Taxes

ASSIGNMENT CLASSIFICATION TABLE

TopicsQuestionsBrief

ExercisesExercisesProblemsCases1.Reconcile pretax financialincome with taxable income.2.Identify temporary andpermanent differences.3.

Determine deferred incometaxes and related items—single tax rate.

4.Classification of deferredtaxes.

5.

Determine deferred incometaxes and related items—multiple tax rates, expectedfuture income.

6.Determine deferred taxes,multiple rates, expectedfuture losses.

7.Carryback and carryforwardof actual NOL.

8.Change in enacted future taxrate.

9.

Tracking temporary differencesthrough reversal.

10.Income statement presentation.11.Conceptual issues—

tax allocation.12.Valuation allowance—

deferred tax asset.13.Disclosure and other issues.

1, 131

2, 3, 4, 56, 7, 13

2, 3, 4, 5,6, 7, 910, 11, 12,8, 1510

10

14, 16, 17,12, 13, 1418,14119

9

1, 2, 8815

19-1

1, 2, 4, 7, 12,18, 20, 214, 5, 6, 71, 3, 4, 5, 7, 8,12, 14, 15, 19,21, 23, 257, 11, 16, 18,19, 20, 21, 222, 13, 16, 17,18, 20, 22

9, 10, 23, 24,25168, 17, 251, 2, 3, 4, 5, 7,10, 12, 16, 23,24, 25

7, 14, 15

1, 2, 3, 8

3, 4, 8, 9

1, 3, 61, 2, 6, 7

52, 72, 72, 3, 5, 7,8, 9

3, 4, 52

2, 3, 51, 6, 7

1, 2, 7

ASSIGNMENT CHARACTERISTICS TABLE

ItemE19-1E19-2E19-3E19-4E19-5E19-6E19-7E19-8E19-9E19-10E19-11E19-12E19-13E19-14E19-15E19-16E19-17E19-18E19-19E19-20E19-21E19-22E19-23E19-24E19-25P19-1P19-2P19-3P19-4P19-5

Description

One temporary difference, future taxable amounts, one rate, nobeginning deferred taxes.

Two differences, no beginning deferred taxes, tracked through 2years.

One temporary difference, future taxable amounts, one rate,beginning deferred taxes.

Three differences, compute taxable income, entry for taxes.Two temporary differences, one rate, beginning deferred taxes.Identify temporary or permanent differences.

Terminology, relationships, computations, entries.Two temporary differences, one rate, three years.

Carryback and carryforward of NOL, no valuation account, notemporary differences.

Two NOLs, no temporary differences, no valuation account,entries and income statements.

Three differences, classify deferred taxes.

Two temporary differences, one rate, beginning deferred taxes,compute pretax financial income.

One difference, multiple rates, effect of beginning balanceversus no beginning deferred taxes.

Deferred tax asset with and without valuation account.Deferred tax asset with previous valuation account.

Deferred tax liability, change in tax rate, prepare section ofincome statement.

Two temporary differences, tracked through three years,multiple rates.

Three differences, multiple rates, future taxable income.

Two differences, one rate, beginning deferred balance, computepretax financial income.

Two differences, no beginning deferred taxes, multiple rates.Two temporary differences, multiple rates, future taxableincome.

Two differences, one rate, first year.

NOL carryback and carryforward, valuation account versus novaluation account.

NOL carryback and carryforward, valuation account needed.NOL carryback and carryforward, valuation account needed.Three differences, no beginning deferred taxes, multiple rates.One temporary difference, tracked for four years, onepermanent difference, change in rate.

Second year of depreciation difference, two differences, singlerate, extraordinary item.

Permanent and temporary differences, one rate.Actual NOL without valuation account.

19-2

Level ofDifficultySimpleSimpleSimpleSimpleSimpleSimpleSimpleSimpleSimpleModerateSimpleComplexSimpleModerateComplexComplexModerateModerateComplexModerateModerateSimpleComplexComplexModerateComplexComplexComplexModerateSimple

Time(minutes)15-2015-2015-2015-2015-2010-1510-1510-1515-2020-2510-1520-2520-2520-2520-2515-2030-3520-2525-3015-2020-2515-2030-3530-3515-2040-4550-6040-4520-2520-25

ASSIGNMENT CHARACTERISTICS TABLE (Continued)

ItemDescription

P19-6Two differences, two rates, future income expected.

P19-7One temporary difference, tracked three years, change in rates,income statement presentation.

P19-8Two differences, two years, compute taxable income and pretaxfinancial income.

P19-9Five differences, compute taxable income and deferred taxes,draft income statement.

C19-1Objectives and principles for accounting for income taxes.C19-2Basic accounting for temporary differences.

C19-3Identify temporary differences and classification criteria.C19-4Accounting for and classification of deferred income taxes.

C19-5Explain computation of deferred tax liability for multiple tax rates.C19-6Explain future taxable and deductible amounts, how carrybackand carryforward affects deferred taxes.C19-7

Deferred taxes, income effects.

19-3

Level ofDifficultyModerateComplexComplexComplexSimpleModerateComplexModerateComplexComplexModerate

Time(minutes)20-2545-5040-5040-4515-2020-2520-2520-2520-2520-2520-25

ANSWERS TO QUESTIONS

1.

Pretax financial income is reported on the income statement and is often referred to as incomebefore income taxes. Taxable income is reported on the tax return and is the amount upon whicha company’s income tax payable is computed.

One objective of accounting for income taxes is to recognize the amount of taxes payable orrefundable for the current year. A second is to recognize deferred tax liabilities and assets for thefuture tax consequences of events that have already been recognized in the financial statementsor tax returns.

A permanent difference is a difference between taxable income and pretax financial income that,under existing applicable tax laws and regula …… 此处隐藏：23521字，全部文档内容请下载后查看。喜欢就下载吧 ……