ACCT 3100 Fin Acc - Baruch College_ Ch 16: Accounting for Income Taxes-Deferred Tax Assets/Liabilities, pre-tax accounting income and taxable income, Deferred Tax Liabilities/Assets, Valuation Allowance, Tax rate, and Net Operating Losses (NOL)

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1 Chapter 16: Accounting for Income Taxes  We are not dealing here with the calculation of income taxes payable to the IRS  Issue = how do we report income tax expense in the income stateme... nt sent to stockholders?  We will deal with 1) Temporary differences between accounting income and taxable income: these create deferred tax assets or liabilities 2) Valuation allowance for deferred tax assets 3) Changes in tax rates 4) Net operating losses Deferred Tax Assets/Liabilities Uses straight-line depreciation for financial reporting Uses accelerated depreciation for income tax reporting. X-Off’s tax rate is 30%. Compute X-Off’s income tax expense and income tax payable. [Show More]

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