Exam (elaborations)
C239 Topic 5 Computing Corporate Taxable Income test fully solved.
- Course
- Institution
C239 Topic 5 Computing Corporate Taxable Income test fully solved.
[Show more]
Content preview
C239 Topic 5Computing
Corporate
Taxable Income
test fully solved
Depreciation expense - answer Favorable
Difference between depreciation expense for
tax purposes and depreciation expense for
book purposes
Gain or loss on disposition of depreciable
assets - answer Unfavorable
Difference between gain or loss for tax and
book purposes when corporation sells or
disposes of depreciable property. Difference
generally arises because depreciation
expense, and thus the adjusted basis of the
, asset, is different for tax and book purposes.
This difference is essentially the reversal of
the book-tax difference for the depreciation
expense on the asset sold or disposed of.
Bad debt expense - answer Unfavorable
Direct write-off method for tax purposes;
allowance method for book purposes
Unearned rent revenue - answer Unfavorable
Taxable on receipt but recognized when
earned for book purposes
Deferred compensation - answer
Unfavorable
Deductible when accrued for book purposes,
but deductible when paid for tax purposes if
accrued but not paid within 2.5 months after
year-end. Also, accrued compensation to
shareholders owning more than 50% of the
corporation is not deductible until paid.
Organizational expenses and start-up costs -
answer Unfavorable
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BRAINBOOSTERS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now