Chapter 16 Corporate Operations
1. (LO 1) Basically phrases, establish the similarities and variations between the company taxable revenue formulation and the person taxable revenue formulation. 2. (LO 1) Is a corporation’s alternative of its tax 12 months impartial from its year-end for monetary accounting functions? three. (LO 1) Can taxable firms use the money technique of accounting? Clarify. . four. (LO 2) Briefly describe the method of computing a corporation’s taxable revenue assuming the company should use GAAP to find out its e book revenue. How would possibly the method differ for companies not required to make use of GAAP for e book functions? 5. (LO 2) What position do a corporation’s audited monetary statements play in figuring out its taxable revenue? 6. (LO 2) What's the distinction between favorable and unfavorable book-tax variations? “ 7. (LO 2) What's the distinction between everlasting and non permanent book-tax variations? eight. (LO 2) Why is it essential to have the ability to decide whether or not a specific book-tax distinction is everlasting or non permanent? 9. (LO 2) Describe the relation between the book-tax variations related to depreciation expense and with acquire or loss on disposition of depreciable property. . 10. (LO 2) When an organization receives a dividend from one other company does the dividend generate a book-tax distinction to the dividend-receiving company (ignore the dividends acquired deduction)? Clarify.