Income and Deferred Taxes

Question 1

Percentage Depletion

Answer 1

as per statutory allowance, over the cost of natural resources, is an example of a permanent difference resulting from an expense not allowed in computing financial income, but permitted in computing taxable income.

Question 2

Deferred Income Tax Expense

Answer 2

⇒Deferred Tax Expense = Temporary Difference x Tax Rate
Per FASB ASU 2015-17, deferred tax assets and liabilities are always netted and treated as non-current on the Balance Sheet.