Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue Expense Revenue Expense 1. $40 2. $40 3. $40 4. $40 5. 35 40 6. 40 35 7. 35 40 30 8. 35 40 25 30 Required: For each situation, determine taxable income, assuming pretax accounting income is $300 million.
Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue Expense Revenue Expense 1. $40 2. $40 3. $40 4. $40 5. 35 40 6. 40 35 7. 35 40 30 8. 35 40 25 30 Required: For each situation, determine taxable income, assuming pretax accounting income is $300 million.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 40P
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Question
Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts:
($ in millions) | |||||||||
Temporary Differences Reported First on: | |||||||||
The Income Statement | The Tax Return | ||||||||
Revenue | Expense | Revenue | Expense | ||||||
1. | $40 | ||||||||
2. | $40 | ||||||||
3. | $40 | ||||||||
4. | $40 | ||||||||
5. | 35 | 40 | |||||||
6. | 40 | 35 | |||||||
7. | 35 | 40 | 30 | ||||||
8. | 35 | 40 | 25 | 30 | |||||
Required:
For each situation, determine taxable income, assuming pretax accounting income is $300 million.
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