Penalties are permanent tax difference

Assignment Help Financial Accounting

Reference no: EM13868282

Why do you think penalties are a permanent tax difference and depreciation is a temporary difference? What makes a book/tax difference permanent versus temporary and how does this affect the effective tax rate?

Reference no: EM13868282

Questions Cloud

Marketing strategy-prepare the journal entry : Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a market- ing strategy to compete with Burger King. Prepare the journal entry to record revenue each month for the first four months of the contrac..

Modern information system must assist levels of management : In your own words, explain structure as it relates to decisions. “To be of any value, a modern information system must assist all levels of management.” Discuss.

Explain the difficulties involved with the ERM process : Explain the difficulties involved with the ERM process. Discuss the actions companies can take to improve risk management. Critique ERM, does it accomplish its goals?

Define bad-good risks-known risks and misperceived risks : Define ERM, bad risks vs. good risks, known risks and misperceived risks. Discuss the problems associated with the current ERM process. Explain how risk management failures contributed to the 2008-09 financial crises.

Penalties are permanent tax difference : Why do you think penalties are a permanent tax difference and depreciation is a temporary difference? What makes a book/tax difference permanent versus temporary and how does this affect the effective tax rate?

What is the purpose of a valuation allowance : What is the purpose of a valuation allowance? If a company is told by an auditor that they must record a valuation allowance against their deferred tax asset, what is the auditor saying about that deferred tax asset? What happens to tax expense when ..

What is the purpose of deferred tax assets and liabilities : What is the purpose of deferred tax assets and liabilities? What do they represent and how do they affect tax expense. Do you think recording deferred tax assets/liabilities helps the readers of the financial statements better understand a company’s ..

What is total tax expense : Lily, Inc. reported a $100,000 total tax expense for financial statement purposes in 2013. This total expense consisted of $250,000 in current tax expense and a deferred tax benefit of $150,000. Assuming a tax rate of 35%, what is Lily's total tax ex..

What is the marginal tax rate of the taxpayer : An unmarried taxpayer with no dependents who takes the standard deduction, has taxable income of $75,000. He is not entitled to any tax credits. Show the calculation of his 2015 tax liability. What is the marginal tax rate of the taxpayer from the pr..

User Account

All Pages