Table of Contents

Course Learning Objectives. 5

Chapter 1 - Accounting for Income Taxes - Section 1. 1

Overview.. 1

Guidance on Accounting for Income Taxes. 1

U.S. Tax Reform 2017 Key Provisions. 2

Tax Rates. 3

Temporary Differences. 4

General Concepts. 4

Deferred Tax Liability and Assets. 6

Effects of a Lower Tax Rate. 14

Tax Accounting Considerations of Adopting ASC 606. 16

Balance Sheet Presentation. 16

Permanent Differences. 17

Intraperiod Tax Allocation. 19

Interperiod Tax Allocation. 20

Income Statement Presentation. 22

General Requirements. 22

Reporting Income Tax Effects of Items in Accumulated Other Comprehensive Income. 22

Chapter 1 - Section 1 Review Questions. 24

Chapter 1 - Accounting for Income Taxes - Section 2. 26

Net Operating Losses. 26

Carryback. 26

Carryforward. 26

Multiple Tax Jurisdictions. 29

Tax Credits. 29

Tax Status Changes. 29

Business Investments. 29

Business Combinations. 30

Separate Financial Statements of a Subsidiary. 33

Convertible Debt 34

Quasi-Reorganization. 34

Chapter 1 - Section 2 Review Questions. 35

Chapter 1 - Accounting for Income Taxes - Section 3. 36

Disclosures. 36

Indefinite Reversal 36

Comprehensive Example. 40

Other Issues. 41

Dividends on Restricted Stock and Options. 41

Employee Stock Ownership Plans (ESOPs). 42

Property Taxes. 42

ASC, FASB, and difference between GAAP and IFRS. 45

Chapter 1 - Section 3 Review Questions. 46

Review Question Answers. 48

Chapter 1 - Section 1 Review Question Answers. 48

Chapter 1 - Section 2 Review Question Answers. 52

Chapter 1 - Section 3 Review Question Answers. 53

Appendix - Amazon Quarterly Report 56

Glossary. 59

Index. 61

CPE Exam Answer Sheet 62

Final Examination. 63

CPASelfstudy.com Course Evaluation. 66