Fundamentals of Tax Accruals Bizzer Professional Training


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Please respond to each independent situation below
Permanent and Temporary Differences – Practice Excercise
In the following independent situations, determine how each item will affect financial reporting for income taxes by determining whether each item gives rise to a permanent difference or a temporary difference.

Make your decision by clicking P  for Permanent Difference
or T  for Temporary Difference
  Permanent
Difference		 Temporary
Difference
Accrued Severance Pay Permanent Difference Temporary Difference
Allowance for Bad Debts Permanent Difference Temporary Difference
Capitalized Software Costs Permanent Difference Temporary Difference
Capital Loss Carryover Permanent Difference Temporary Difference
Charitable Contribution
    at Fair Market Value		 Permanent Difference Temporary Difference
Entertainment Expenses that
    are Subject to 50% Exclusion		 Permanent Difference Temporary Difference
Intangible Assets that are Not
    Amortizable for Tax Purposes		 Permanent Difference Temporary Difference
Interest Capitalized for
    Book Purposes Only		 Permanent Difference Temporary Difference
Interest on Municipal Bonds Permanent Difference Temporary Difference
Litigation Accrual Permanent Difference Temporary Difference
Pension Liabilities Permanent Difference Temporary Difference
Prepaid Insurance Permanent Difference Temporary Difference
Tax Depreciation on Fixed Assets
    in Excess of Book		 Permanent Difference Temporary Difference

 

 

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