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Deferred taxA company may enter into transactions in the current financial period that may result in the firm either paying or saving some tax in the future. The tax that may be paid or saved in the future is called deferred tax that may be paid in the future is called deferred tax liability whereas tax that may be saved in the future is called deferred tax asset.Previously accountants used to compute deferred tax using the income statement approach. Under this approach, the difference between profit before tax and taxable profits was simply referred to as a difference. This difference was classified into permanent and temporary timing differences.Permanent differences related to those items that are adjusted for tax in the current year and will never be adjusted for tax in the future E.g. Donations to political parties.
1. Jim buys only milk and biscuits. (a) In 2004, Jim earns $100, milk costs $2, biscuits cost $4 per dozen. Draw Jim's budget constraint (b) Now suppose that all prices i
CAUSES OF FAILURE OF LEGACIES AND GIFTS OF RESIDUE 1) Ademption : If property which has been specifically bequeathed does not belong to the testator at the time of his death,
On December 31, 2014, Santana Company has $7,194,600 of short-term debt in the form of notes payable to Golden State Bank due in 2015. On January 28, 2015, Santana enters into a re
how do i write an assignment about financial decision making
#Which of the two ratios are the greatest? 1.67.1 or 0.29.1
Is goodwill a fictitious asset?
ABC Analysis: ABC that is Always Better Control analysis is an application of the principle of 'Management by Exception' to the field of inventory control. If we seem at the in
how to record items on this account
Wilson Wonders's bonds have 15 years remaining to maturity. Interest is paid yearly, the bonds have a $1,000 par value, and the coupon interest rate is 12%. The bonds sell at a pri
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