Term
| How is a Deferred Tax Asset/Liability calculated? |
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Definition
| tax rate times the temporary difference between financial statement carrying amounts and its tax basis |
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Term
| Does GAAP use a balance sheet of income statement view for taxes? |
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Definition
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Term
List 2 examples of deferred tax liabilities
(revenue - pg. 952) |
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Definition
Installment sales of property (installment method for taxes)
Unrealized gain from investments at fair value (taxable when sold) |
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Term
List 2 examples of deferred tax liabilities
(expense - pg. 952) |
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Definition
Accelerated depreciation on the Tax Return in excess of SL depreciation on the I.S.
Prepaid expenses |
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Term
List 3 examples of deferred tax assets
(revenue - pg. 952) |
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Definition
Rent collected in advance
subscriptions collected in advance
Other revenue collected in advance |
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Term
List 2 examples of deferred tax assets
(expense - pg. 952) |
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Definition
Estimated expenses and losses
Unrealized loss from recording investments at FMV (tax deductible when asset is sold) |
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Term
| What two situations give rise to a deferred tax liability? |
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Definition
1. A revenue being reported on the tax return after being reported on the IS.
2. An expense being reported on the tax return before being reported on the IS. |
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Term
| What is a deferred tax asset? |
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Definition
| A temporary difference in Reporting and Tax purpose incomes, where the tax deduction is paid now but reported later. |
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Term
| What is a deferred tax liability |
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Definition
| A temporary difference in reporting and taxable incomes, where the tax is reported now but paid later. (Hence the liability) |
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