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Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences reported first on:
Income Statement
Revenue
Expense
Tax Return
Revenue
Expense
(1)
$ 20,000
(2)
$ 20,000
01:59:20
(3)
$ 20,000
$ 15,000
(4)
$ 15,000
$ 20,000
$ 5,000
$ 10,000
Required:
For each situation, determine the taxable income assuming pretax accounting income is $100,000.
Note: Amounts to be deducted should be indicated by a minus sign.
Accounting income
Temporary differences:
Income statement first:
Revenue
Expense
Tax return first:
Revenue
Expense
Taxable income
(1)
(2)
(3)
(4)
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
$ 100,000
