C. tax expense shown on the income statement to equal the amount o
f income taxes payable for the current year plus or minus the change i
n the deferred tax asset or liability balances for the year.
D. tax expense in the income statement to be presented with the spec
ific revenues causing the tax.
33) Which of the following situations would require interperiod inco
me tax allocation procedures?
A. A temporary difference exists at the balance sheet date because th
e tax basis of an asset or liability and its reported amount in the financ
ial 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 re
venue or gain that is taxable after it is rec ognized in financial income?
A. An installment sale accounted for on the accrual basis for financia
l reporting purposes and on the installment (cash) basis for tax purpos
es.
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?
A. Revenues or gains that are recognized in financial income but are
never included in taxable income.
B. Revenues or gains that are taxable before they are recognized in fi
nancial income.
C. Expenses or losses that are tax deductible after they are recognize
d in financial income.
D. Expenses or losses that are tax deductible before they are recogni
zed in financial income.
36) Which of the following are temporary differences that are normall
y classified as expenses or losses that are deductible after they are rec
ognized in financial income?
A. Depreciable property.
B. Product warranty liabilities.