Accounting for Income Taxes

# Intermediate Accounting Study Set 7

## Quiz 17 :Accounting for Income Taxes Study Flashcards  Looking for Accounting Homework Help? ## Quiz 17 :Accounting for Income Taxes

Showing 1 - 20 of 146  Book income refers to the amount of income reported on a company's tax return.
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True False

False Taxable income refers to the amount of income reported on a company's tax return.
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True False

True The amount of income a company reports in its financial statements is known as ________.
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Multiple Choice

A The amount of income that a company reports on its tax return is known as ________.
Multiple Choice Greene Co. has book income of $425,000, and a tax rate of 30%. Assuming there are no book-tax differences, what will the journal entry be to record the income tax expense? Multiple Choice Answer: TLR Productions has book income of$450,000, and a tax rate of 35%. Assuming there are no book-tax differences, what is TLR's income tax expense?
Multiple Choice TNT Corporation's income tax payable is $230,000 and its tax rate is 30%. Assuming no book-tax differences, what is TNT's income before taxes? (Round your answer to the nearest whole dollar.) Multiple Choice Answer: TNT Corporation's income tax payable is$240,000 and its tax rate is 30%. Assuming no book-tax differences, what is TNT's net income? (Round your answer to the nearest whole dollar.)
Multiple Choice S & C Inc.'s income tax payable is $290,000 and its tax rate is 30%. Assuming no book-tax differences, what is S & C's net income? (Round your answer to the nearest whole dollar.) Multiple Choice Answer: Betta Group's net income is$400,000 and its tax rate is 25%. Assuming no book-tax differences, what is Betta's taxes payable? (Round your answer to the nearest whole dollar.) Brown Inc.'s net income is $300,000 and its tax rate is 25%. Assuming no book-tax differences, what is the journal entry to record income tax expense? (Do not round intermediate calculations. Only round your final answer to the nearest whole dollar.) Multiple Choice Answer: The effective tax rate is the legally imposed rate in a given taxing jurisdiction. True False Answer: The statutory tax rate is the legally imposed rate in a given taxing jurisdiction. True False Answer: U.S. GAAP requires companies to reconcile the federal statutory income tax rate to the effective tax rate. True False Answer: ________ differences between book income and taxable income result in an effective tax rate that differs from the statutory tax rate. Multiple Choice Answer: Which of the following statements best describes the effective tax rate? Multiple Choice Answer: Caesar Corporation reports municipal interest income on their financial statements. What (if any) book-tax difference will result? Multiple Choice Answer: Dante Inc. reported fines and penalties on their income statement this year. What (if any) book-tax difference will result? Multiple Choice Answer: Olympics Inc. recorded a dividends received deduction on their tax return this year. What (if any) book-tax difference will result? Multiple Choice Answer: Media Corporation incurred$25,000 in expenses associated with tax-exempt income this year. What (if any) book-tax difference will result? 