B . tax expense shown in the income statement to bear a normal relation to the tax liability .
C . tax expense shown on the income statement to equal the amount of income taxes payable for the current year plus or minus the change in the deferred tax asset or liability balances for the year .
D . tax expense in the income statement to be presented with the specific revenues causing the tax .
33 ) Which of the following situations would require interperiod income tax allocation procedures ?
A . A temporary difference exists at the balance sheet date because the tax basis of an asset or liability and its reported amount in the financial statements differ
B . Interest received on municipal bonds C . An excess of percentage depletion over cost depletion D . Proceeds from a life insurance policy on an officer
34 ) Which of the following is a temporary difference classified as a revenue or gain that is taxable after it is recognized in financial income ?
A . An installment sale accounted for on the accrual basis for financial reporting purposes and on the installment ( cash ) basis for tax purposes .
B . Prepaid royalty received in advance . C . Subscriptions received in advance . D . Interest received on a municipal obligation .
35 ) Which of the following differences would result in future taxable amounts ?