Asset or Liability?
Georgia records income in September 2017 that we don't expect to receive until June 2018.
What is a Deferred Tax Liability?
In 2018, Josh recorded liquidated damages of $1M for SGS expected to be paid in 2019 (extra 100 points for asset/liability determination).
$1,000,000 x .21= $210,000 DTA
This person could help you with non-tax FERC workpapers.
Who is Eric?
Janet records a penalty in August 2017 for a DEQ Air Quality Violation.
What is current tax expense?
In July 2018, Melissa recorded an additional $10M for Incentive Compensation expected to be paid out in March 2019.
What is a deferred tax asset?
In 2018, the company deducted $500,000 of Lobbying costs, tax isn't allowed to deduct any of these costs.
What is zero?
This person was on the career track of a psychologist.
Who is Dianna?
This amount on the income statement reflects income taxes payable for the year.
What is current tax expense?
The 2012 Tax Return showed a taxable loss, Jay decides that it would be best not to carry the loss back but to save it for a future year when we expect lots of income.
What is a deferred tax asset?
In 2013 (35% tax rate), for tax purposes the SJ SCR costs of $100K were deducted as the project was determined to be abandoned. For book purposes, the costs were moved to a reg. asset and expected to be recovered.
Calculated the difference at 12/31/13 and 12/31/18 (extra 100 points for asset/liability determination).
12/31/13: $100,000 x .35 = $35,000
12/31/18: $100,000 x .21 = $21,000
Has many worked many jobs, including stock broker and restaurant management.
Who is Marty?
David forgot to record $500,000 of Other Income (assume that there is no book-tax difference).
What is current tax expense?
In 2013, for tax purposes, the San Juan SCR project was abandoned, however for book purposes the costs were believed to be recoverable and were moved to a regulatory asset.
What is a deferred tax liability?
The company purchased an $20,000 asset in 2018.
Book Depreciation for Year 1, 2 and 3 is $4,000 each
Tax Depreciation for Year 1, 2, and 3 is $4,000,$3840, and $6,400.
Calculate the temporary difference at the end of Year 2 (extra 100 points for asset/liability determination).
$470 DTL
This person was the archery champion for a northern state.
Who is Jay?
This amount on the Income Statement generally reflects the change in book-tax temporary differences.
What is deferred tax expense?
Jay realizes that he completely overestimated income for the next several years and that the company will have losses for the foreseeable future and won't be able to utilize the NOL carryforward. In September 2018, he records a valuation allowance against the NOL carryforward.
What is a deferred tax contra-asset?
The company purchased an $30,000 asset in 2018. Tax is not allowed to include AFUDC Equity of $5,000 in the basis of the asset
Book Depreciation uses straight for 5-year property.
Tax Depreciation uses MACRS 5-year and the Year 1 depreciation rate is 20%.
Calculate the temporary difference at the end of Year 1.
$210
This person was pursuing a career in nursery before turning to accounting.
Who is Rebecca?
This tax impacts the effective tax rate.
What is current and deferred tax expense?