Reference no: EM132629802
Questions -
Q1 - Jazz Corporation owns 10 percent of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($2,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?
$0.
$4,000.
$5,000.
$6,500.
None of the choices are correct.
Q2. Which of the following statements best describes the disclosure of a company's deferred tax assets and liabilities?
Deferred tax assets and liabilities must be separately disclosed in the balance sheet.
All deferred tax assets and liabilities are treated as noncurrent and can be netted and disclosed as one aggregate amount on the balance sheet.
Current deferred tax assets and liabilities and noncurrent deferred tax assets and liabilities can always be netted on the balance sheet.
All deferred tax assets and liabilities are treated as noncurrent and can be netted on the balance sheet only if they arise in the same tax jurisdiction.
Q3. Which of the following temporary differences creates a deferred tax liability?
Accumulated tax depreciation in excess of book depreciation on a building.
Accumulated tax amortization in excess of book amortization on a customer list.
Compensation expensed for book purposes but deferred for tax purposes.
Both accumulated tax depreciation in excess of book depreciation on a building and accumulated tax amortization in excess of book amortization on a customer list create a deferred tax liability.