Which one of the followings is the defined tax base of the liability?I Carrying amount - future deductible amountII Carrying amount - future taxable amountIII Carrying amount – revenue received in advance not taxable in futureIV Carrying amount – revenue received in advance taxable in future Reading required: Learning objective 13.5.2 on pages 422-423Group of answer choicesI, IIIIII, IVI, IV
Question
Which one of the followings is the defined tax base of the liability?I Carrying amount - future deductible amountII Carrying amount - future taxable amountIII Carrying amount – revenue received in advance not taxable in futureIV Carrying amount – revenue received in advance taxable in future Reading required: Learning objective 13.5.2 on pages 422-423Group of answer choicesI, IIIIII, IVI, IV
Solution
The tax base of a liability is defined as the carrying amount of the liability minus any amount that will be deductible for tax purposes in the future.
So, let's analyze the options:
I. Carrying amount - future deductible amount: This is correct, as it follows the definition of the tax base of a liability.
II. Carrying amount - future taxable amount: This is incorrect, as the tax base of a liability is reduced by amounts that will be deductible in the future, not taxable.
III. Carrying amount – revenue received in advance not taxable in future: This is incorrect, as revenue received in advance that is not taxable in the future does not affect the tax base of a liability.
IV. Carrying amount – revenue received in advance taxable in future: This is incorrect, as revenue received in advance that will be taxable in the future does not reduce the tax base of a liability.
Therefore, the correct answer is I.
Similar Questions
Which of the followings is not the defined tax base of the asset? Reading required: Learning objective 13.5.2 on pages 420-421Group of answer choicesCarrying amountRecoverable amountFuture deductible amountGross amount PreviousNext
Taxable temporary differences arise whenI Carrying amount of an asset > Tax base of an assetII Carrying amount of an asset < Tax base of an assetIII Carrying amount of a liability > Tax base of a liabilityIV Carrying amount of a liability < Tax base of a liability Reading required: Learning objective 13.5.3 on pages 423-424Group of answer choicesII, IVII, IIII, IIII, IV
Which of the following is reported in a Balance Sheet as a liability? a. Contingent liability b. Accumulated depreciation c. Revenue received in advance d. Accrued revenue
Tax liability is calculated based on: Answer areaGross IncomeTaxable IncomeNet IncomeTotal Income
Differences between the carrying amounts of an entity's net assets determined under accounting standards and accrual accounting and the tax bases of those net assets determined under the Income Tax Assessment Act 1997, are known as: Reading required: Learning objective 13.5: calculate and account for deferred income tax.Group of answer choicestemporary differences.permanent differences.tax losses.the current income tax liability.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.