Question: The U S Treasury maintains an information site on the Internet

The U.S. Treasury maintains an information site on the Internet. As part of this site the Internal Revenue Service provides tax information and services. Among those services is a server for publications and forms which allows a visitor to download a variety of IRS forms and publications.

1. Download the corporation tax return, Form 1120.
2. Note the specific deductions listed that are deductible from total income to arrive at taxable income. Are any deductions listed that might not also be included among expenses in the income statement?
3. One of the deductions indicated is “net operating loss deduction.” Under what circumstances might a company report an amount for this item?
4. Based on how taxable income is determined, how might temporary differences be created between taxable income and pretax income in the income statement?

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  • CreatedJuly 05, 2013
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