WebWhatever the event or circumstance, a temporary difference will arise when a basis difference is expected to result in a taxable or deductible amount when the reported … WebCash advances from expenditure-driven grants should be recorded as unearned revenue (a liability). The key eligibility requirement for an expenditure-driven grant is the use of funds (which does not occur until …
Unearned Revenue - Definition, Accounting Treatment, Example
WebQuestion: ss Ca Ross, Inc. reported income before tax of $160,000 and taxable income was $210,000. This $50,000 difference was due to unearned revenues that the firm recorded as revenue for tax purposes, but as a liability for book purposes. Ross is subject to a 25% tax rate. a. What is the book basis of the unearned revenue? b. WebMar 31, 2024 · Deferred tax asset is an accounting term that refers to a situation where a business has overpaid taxes or taxes paid in advance on its balance sheet. These taxes are eventually returned to the ... cnc swindon
Unearned Revenue: What It Is, How It Is Recorded and Reported
WebIt does not have any permanent differences and the only temporary difference relates to $45,000 unearned income that it recorded for book purposes. Tetra anticipate satisfying this liability equally over the following three years. The current enacted tax rate is 40 %. WebSep 30, 2024 · For book purposes, this resulted in a gross profit of $160,000 in 2024 based on $1.6 million of revenue and $1.4 million of cost of goods sold. For income tax purposes, ManufacturerCo is required to recognize the $1.6 million of revenue in taxable income in 2024 under the revenue acceleration provision. WebApr 14, 2024 · Unearned Revenue Defined. Unearned revenue refers to the money small businesses collect from customers for a or service that has not yet been provided. In … cnc swarf removal systems