Additional disclosures are required pertaining to the income tax expense reported in the income statement. What are the needed disclosures?
Answer to relevant QuestionsThe means of dealing with uncertainty in tax positions is prescribed by GAAP in FASB ASC 740–10: Income Taxes–Overall (previously FASB Interpretation No. 48 (FIN 48)). Describe the two-step process provided by FIN 48.A company reports pretax accounting income of $10 million, but because of a single temporary difference, taxable income is $12 million. No temporary differences existed at the beginning of the year, and the tax rate is ...J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2011. The only difference between accounting and taxable income is estimated product warranty costs for sales this year. Warranty ...On January 1, 2008, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2010, the carrying value of ...At the end of 2010, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book-tax difference of $75 million in a liability for estimated expenses. At the end of 2011, ...
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