The nature of the temporary difference on the manufacturing building at 31 December 20x4 is: A. Reversing temporary difference B. Deferred temporary difference C. Taxable temporary difference D. Exempt temporary difference E. Deductible temporary difference A. eductible temporary difference A. eductible temporary difference A. eductible temporary difference
Added by Brianna B.
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Temporary differences arise when there is a discrepancy between the carrying amount of an asset or liability in the financial statements and its tax base. These differences can be classified as either taxable or deductible. Show more…
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Which of the following represents a taxable temporary difference? Trade receivables have been recorded in the accounting books for 800. The related revenue will be taxed on a cash basis. A generator was impaired for book purposes but not for tax purposes, so that the carrying value of the generator in the accounting books is 5,050 and its tax base is 5,500. An accrued expense has a carrying value of 1,700. The related expense will be deducted for tax purposes on a cash basis. Inventory of 33,000 was written off to its net realizable value of 28,000 in the accounting books, but not for tax purposes.
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On December 31, 20x1, Entity A determines that its building is impaired. Entity A gathers the following information: Building 2,000,000 Accumulated depreciation 600,000 Fair value less costs of disposal (FVLCD) 900,000 Value in use (VIU) 1,080,000 After the impairment, the building is assessed to have a remaining useful life of six years and no residual value. On December 31, 20x2, Entity A determines an indication that the impairment loss recognized in the prior period may no longer exist. The revised recoverable amount of the building on December 31, 20x2 is ₱1,280,000. If no impairment loss had been recognized in the prior period, the carrying amount of the building on December 31, 20x2 would have been ₱1,200,000. How much is the gain on reversal of impairment on December 31, 20x2? a. 314,351 b. 312,156 c. 303,315 d. 300,000
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