E$19\mathrm{.}7($L$01,2)($Terminology$,$ Relationships, Computations, Entries$)$

Instructions

Complete the following statements by filling in the blanks.

a$.$ In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be $($less than, greater than$)$ pretax financial income.

b$.$ If a $$38,000$ balance in Deferred Tax Asset was computed by use of a $20\%$ rate, the underlying cumulative temporary difference amounts to &

c$.$ Deferred taxes $($are$,$ are not$)$ recorded to account for permanent differences.

d$.$ If a taxable temporary difference originates in $2020,$ it will cause taxable income for $2020$ to be $($less than, greater than$)$ pretax financial income for $2020.$

e$.$ If total tax expense is $$50,000$ and deferred tax expense is $$65,000,$ then the current portion of the expense computation is referred to as current tax

$($expense$,$ benefit$)$ of $

f$.$ If a corporation's tax return shows taxable income of $$100,000$ for Year $2$ and a tax rate of $20\%,$ how much will appear on the December $31,$ Year $2,$ balance sheet for "Income taxes payable" if the company has made estimated tax payments of $$18,250$ for Year $2?$ $

g$.$ An increase in the Deferred Tax Liability account on the balance sheet is recorded by a $($debit$,$ credit$)$ to the Income Tax Expense account.

h$.$ An income statement that reports current tax expense of $$82,000$ and deferred tax benefit of $$23$ will report total income tax expense of $

i$.$ A valuation account is needed whenever it is judged to be that a portion of a deferrec asset $($will be$,$ will not be$)$ realized. total income tax expense of $$55,000,$ the difference of $$20,000$ is referred to as deferred tax $($expense$,$ benefit$).$