Purchase Solution

This addresses taxable & financial income & deferred assets.

Not what you're looking for?

Ask Custom Question

1. Why are there differences between taxable and financial income? What are some examples of permanent and temporary differences? Why do these differences exist? How do they affect the financial statements?

2. How are deferred tax assets and deferred tax liabilities derived? How do they relate to the difference between tax expense and taxes payable? How could an organization have a tax receivable? Why is the tax expense reported on the income statement comprised of current and deferred tax?

Purchase this Solution

Solution Summary

The solution thoroughly answers each question presented regarding the differences between taxable and financial income, and how deferred tax assets and deferred tax liabilities are derived, along with explaining all related issues to both questions presented.

Solution Preview

(1) There are differences between taxable and financial income because financial income is the amount that is used for investor analysis, whereas taxable income is the amount of income reported to the IRS that is considered taxable. A temporary difference would be calculating depreciation under one method for book purposes and under another method for tax purposes. A permanent difference would result from a company acquiring another company at above or below cost, causing a permanent loss/gain ...

Purchase this Solution

Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.


This tests some key elements of major motivation theories.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.