Income Taxes

Question 1

174. What is the current provision for income tax?

Answer 1

Also called the tax liability for the year is the current tax rate X taxable income.

Question 2

177. what should be disclosed in company’s f/s’s in relation to deferred taxes?

Answer 2

(1) temporary differences
(2) The nature and amount of each type of operating loss and tax credit carry-forward.

note: remember keyword “deferred”…perm differences do not contribute to deferred tax assets or liabs, thus do not need to be disclosed in f/s’s