C. Calculate the tax base of a company's assets and liabilities

Question 1

Tax base of assets

Answer 1

The amount that will be deducted (expensed) on the tax return in the future as economic benefits of the asset are realized. The CV is the value of the asset reported on the financial statements, net of depreciation and amortization.

Question 2

Tax base of assets ex’s

Answer 2

Depreciable Eq.

R&D

AcR

Question 3

Tax Base of Liabilities

Answer 3

A liabilitys tax base is the CV of the liability minus any amounts that will be deductible on the tax return in the future. The tax base of revenue received in advance is the CV minus the amount of revenue that will not be taxed in the future.

Question 4

Tax base of L’s ex’s

Answer 4

Customer advance

Warranty Liability

Note Payable