Corporation Income Statements

2 Pages
126 Views

Department
Financial Accounting
Course Code
MGAB01H3
Professor
Liang Chen

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Description
Corporation Income Statements Income statements for corporations are the same as the statements for proprietorships or partnerships except for one thing: the reporting of income tax. Corporate Income Tax For tax purposes, corporations are considered to be a separate legal entity. As a result, income tax expense is reported in a separate section of the corporation income statement, which is located before net income. There are two separate accounts added: income before income tax and income tax expense. Income tax is calculated annually, but estimated and remitted monthly. Usually, the estimated and accrued amount of income tax is different from the actual amount. When the definitive amount is given, an adjusting entry with the income tax expense and income tax payable accounts are adjusted. Interperiod Tax Allocation The difference in accounting objectives for revenues and expenses for GAAP and CCRA purposes causes timing differences to occur. These timing differences result in future income taxes. The act of dividing the amounts due and receivable for current operations and future operations is called interperiod tax allocation. Intraperiod Tax Allocation - Intraperiod tax allocation refers to the procedure of associating income taxes within the income statement to the specific item that di
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit