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Flashcards in 14 Wrong Answers Deck (10):
0

When trying to calculate the current federal tax liability:

Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes should be...

Subtracted from pretax book income

1

A deferred tax liability or asset is considered to be related to an asset or liability if...

Reduction of the asset or liability will cause the temporary
Difference to reverse

2

If the deferred tax liability or asset is not related to any asset or liability, it should be classified based on...

The timing of its expected reversal/utilization date

3

If a deferred tax liability is related to equipment which is Noncurrent, the deferred tax liability should...

Also be classified as a Noncurrent liability

4

Costs of guarantees and warranties are not deductible under the IRC until...

Incurred

5

Costs of guarantees and warranties are estimated and recorded as...

An expense (loss) and liability in period of sale

6

The internal revenue code requires the direct write off method for bad debts, therefore bad debts can't be deducted until...

The debt becomes uncollectible and is written off

7

When no deduction is allowed in the current year this leads to...

A future deductible amount and is a deferred tax asset

8

How is goodwill treated for tax purposes?

Amortized for tax purposes

9

Goodwill is amortized for tax purposes and tested for impairment for GAAP purposes, therefore this would result in...

A temporary difference