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Chapter 16: Accounting for Income Taxes

Horizontales
Tax rate to be used in a given year's DTL/DTA calculations.
Tax position requiring "more likely than not" probability of being sustained in order to record potential tax benefit.
Future deductible amounts.
Future taxable amounts.
NOL _____: used to offset previous taxable income that produces a refund of taxes paid in prior years.
Type of difference between pretax accounting income and taxable income that will never reverse.
Income Taxes _____: amount of taxes due in the current year based on tax return.
Verticales
Tax rate calculated by dividing company's tax expense by pretax accounting income.
Income Taxes _____: total tax (current and future) incurred from current year events.
Negative taxable income; leads to creation of a DTA.
Type of difference caused by accounting income and taxable income recognizing revenues/expenses in various reporting periods.
NOL _____: used to offset future taxable income; creates future deductible amounts.
A contra-asset account that reduces some or all of a DTA that will not be realized.
Carrying value of an asset or liability for tax purposes.