Income Taxes Flashcards
What are the general rules for reporting deferred taxes on the balance sheet?
How do you calculate the effective tax rate when financial net income includes non-taxable and non-deductible items?
How are permanent and temporary differences added or subtracted when calculating taxable income?
What are the do’s and don’ts for calculating deferred tax liabilities and assets
How do you determine which tax rate to use for calculating a deferred tax liability when multiple future rates are mentioned?
8 main temporary/permanent differences
What are common temporary differences and their treatment (items to subtract and add)?
Are non-deductible expenses considered permanent or temporary differences?
Why do we add non-deductible expenses like fines and penalties to taxable income if they’re already included in net income
What Increases Taxable Income Now
What Reduces Taxable Income Now
What are the steps for calculating taxable income when using the equity method?
What are the steps to solve for the reduction in a deferred tax asset when there’s a change in depreciation method?
What are the Do’s and Don’ts when calculating total income tax expense with permanent differences and estimated tax payments?
What is the Asset and Liability Approach for determining income tax expense, and how does it differ from other methods
How do you handle uncertain tax positions (UTPs) when the deduction is expected to be disallowed?
What causes Deferred Tax Liabilities (DTLs) and Deferred Tax Assets (DTAs), and what are some common examples
How do you determine the recognized tax benefit for uncertain tax positions under GAAP?
Calculation of current income tax expense Pt. 1 - Formula
Calculation of current income tax expense Pt. 2 - What are the key Do’s and Don’ts when calculating current income tax expense?
summary of the rules for solving problems involving Deferred Tax Liabilities (DTL) related to long-term contract revenue recognition
How to determine the deferred tax liability when given pretax financial income, taxable income, and specific adjustments (e.g., non-taxable interest, long-term loss accrual, excess depreciation).
How to determine the current and deferred tax liabilities given pretax income, penalties, and excess tax depreciation.
Income tax worksheet
Whats Selions effective tax rate?
Given
What rate should you use for calculating interim tax expense
The expected effective annual income tax rate for the current year. ETR
Not the quarterly rate, prior year rate, or statutory rate
What rate should you use for calculating income tax expense for the year
Statutory
Statutory
List of temporary differences and impacts: What to add to net income and what to deduct
Permanent differences list
Deferred tax expense formula
Temporary differences x future enacted tax rate
