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stira [4]
3 years ago
10

Deferred income taxes are based on the:_______.

Business
1 answer:
Hunter-Best [27]3 years ago
3 0

Answer:

a. current tax rate or future tax rates, depending on when the temporary difference will reverse.

Explanation:

Deferred Tax is not payable to tax Authority it is only a book entry used by Accountants to match Income taxes payable in terms of Income Act and Income taxes expected to be presented to users in financial Statements.

Deferred taxes are based on current tax rate or future tax rates, depending on when the temporary difference will reverse.

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Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10
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Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

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