Deferred Tax Asset / Liability – Practice Excercise
In the following independent situations, determine how each item will affect financial reporting for income taxes by classifying each item as a potential deferred tax asset or deferred tax liability for the originating year.
Make your decision by clicking
A for Deferred Tax Asset
or L for Deferred Tax Liability
Deferred Tax Asset
Deferred Tax Liability
Accrued Severance Pay
Allowance for Bad Debts
Capitalized Software Costs For Book Purposes
Capital Loss Carryover
Intangible Assets that are Not Amortizable for Tax Purposes
Interest Capitalized for Book Purposes Only
Litigation Accrual
Pension Liabilities
Prepaid Insurance
Tax Depreciation on Fixed Assets in Excess of Book
