CHAPTER 18
INCOME TAXES
ASSIGNMENT CLASSIFICATION TABLE
Brief Writing
Topics Exercises Exercises Problems Assignments
1. Income taxes from 1 4
a business
perspective.
2. Difference between 2, 3, 4, 5 1, 2, 3, 4, 5, 1, 2, 3, 5, 1, 2, 3
accounting income 6, 7, 8, 9, 10, 6, 7, 8, 9,
and taxable 11, 12, 13, 10, 11,
income, calculate 14, 15, 16, 13, 14, 15
taxable income. 17, 18, 19
3. Taxable temporary 4, 6, 7 4, 5, 6, 7, 8, 1, 2, 3, 5,
differences, 9, 10, 11, 12 6, 7, 8, 9,
calculation of 13, 14, 15
deferred/future
income tax
liabilities.
4. Deductible 8, 9 4, 5, 6, 7, 8, 1, 2, 3, 5,
temporary 13, 14, 15, 6, 7, 8, 9,
differences, 16, 17 13, 14, 15
calculation of
deferred/future
income tax assets.
Solutions Manual 18-1 Chapter 18
, 5. Deferred/future 3, 4, 5, 6, 7, 5, 6, 7, 8, 9, 1, 3, 4, 5,
income tax 9, 10, 11 10, 11, 12, 6, 7, 8, 9,
balances. 13, 14, 15, 10, 11,
16, 17, 18 13, 14, 15
6. Multiple tax rates, 12 12, 16, 17, 2, 3, 4, 14 5, 6
tax rate changes. 19, 20
7. Loss carrybacks. 13, 14, 15, 21, 22, 23, 24 12
16, 17
Solutions Manual 18-2 Chapter 18
,ASSIGNMENT CLASSIFICATION TABLE (CONTINUED)
Brief Writing
Topics Exercises Exercises Problems Assignments
8. Loss carryforwards. 14, 15, 16, 22, 23, 24 12, 15
17
9. Valuation of 24, 25, 26
deferred/future tax
asset.
10. Presentation and 18, 19, 20, 24, 27, 28, 1, 2, 3, 4, 1
disclosure of 21 29, 30, 31 5, 6, 7, 8,
income taxes. 9, 10, 11,
12, 13,
14, 15
11. Differences 21, 22 18, 29, 30, 31 1, 2, 3, 5, 1, 2,3, 6, 7
between IFRS and 6, 7, 8, 9,
ASPE. 10, 11,
14
Please note: The simplifying assumption is made that all
companies in the end-of-chapter brief exercises,
exercises and problems use the term ―deferred‖ rather
than ―future‖ for the tax-related accounts, even when
applying ASPE.
Solutions Manual 18-3 Chapter 18
, ASSIGNMENT CHARACTERISTICS TABLE
Level of Time
Item Description Difficulty (minutes)
E18-1 Terminology, relationships, calculations, Simple 10-15
entries.
E18-2 One temporary difference through three Simple 10-15
years, one rate.
E18-3 Intraperiod tax allocation. Moderate 15-20
E18-4 Identify temporary or permanent Simple 10-15
differences and direction of adjustment.
E18-5 Two temporary differences, future taxable Moderate 20-25
amounts, one rate, no beginning deferred
taxes.
E18-6 Two temporary differences, future taxable Moderate 20-25
amounts, one rate, beginning deferred
taxes.
E18-7 Two temporary differences, future taxable Moderate 20-25
amounts, change in rate.
E18-8 Reversing and permanent, future taxable Simple 20-25
amounts, no beginning balances.
E18-9 One temporary difference, future taxable Simple 20-25
amounts, one rate, no beginning deferred
taxes, prepare statements
E18-10 One temporary difference, future taxable Simple 15-20
amounts, one rate, no beginning deferred
taxes.
E18-11 One temporary difference, future taxable Simple 15-20
amounts, one rate, beginning deferred
taxes.
E18-12 One temporary difference, future taxable Simple 15-20
amounts, change in rate.
E18-13 Permanent and reversing differences, Simple 15-20
calculate taxable income, entry for income
taxes.
E18-14 One temporary difference, future Simple 15-20
deductible amounts, one rate, beginning
deferred taxes.
E18-15 One temporary difference, future Simple 15-20
deductible amounts, one rate, beginning
deferred taxes.
E18-16 One temporary difference, future taxable Moderate 20-25
amount becomes future deductible
amount, change in rate.
E18-17 One temporary difference, future Moderate 20-25
deductible amounts, change in rate
Solutions Manual 18-4 Chapter 18
INCOME TAXES
ASSIGNMENT CLASSIFICATION TABLE
Brief Writing
Topics Exercises Exercises Problems Assignments
1. Income taxes from 1 4
a business
perspective.
2. Difference between 2, 3, 4, 5 1, 2, 3, 4, 5, 1, 2, 3, 5, 1, 2, 3
accounting income 6, 7, 8, 9, 10, 6, 7, 8, 9,
and taxable 11, 12, 13, 10, 11,
income, calculate 14, 15, 16, 13, 14, 15
taxable income. 17, 18, 19
3. Taxable temporary 4, 6, 7 4, 5, 6, 7, 8, 1, 2, 3, 5,
differences, 9, 10, 11, 12 6, 7, 8, 9,
calculation of 13, 14, 15
deferred/future
income tax
liabilities.
4. Deductible 8, 9 4, 5, 6, 7, 8, 1, 2, 3, 5,
temporary 13, 14, 15, 6, 7, 8, 9,
differences, 16, 17 13, 14, 15
calculation of
deferred/future
income tax assets.
Solutions Manual 18-1 Chapter 18
, 5. Deferred/future 3, 4, 5, 6, 7, 5, 6, 7, 8, 9, 1, 3, 4, 5,
income tax 9, 10, 11 10, 11, 12, 6, 7, 8, 9,
balances. 13, 14, 15, 10, 11,
16, 17, 18 13, 14, 15
6. Multiple tax rates, 12 12, 16, 17, 2, 3, 4, 14 5, 6
tax rate changes. 19, 20
7. Loss carrybacks. 13, 14, 15, 21, 22, 23, 24 12
16, 17
Solutions Manual 18-2 Chapter 18
,ASSIGNMENT CLASSIFICATION TABLE (CONTINUED)
Brief Writing
Topics Exercises Exercises Problems Assignments
8. Loss carryforwards. 14, 15, 16, 22, 23, 24 12, 15
17
9. Valuation of 24, 25, 26
deferred/future tax
asset.
10. Presentation and 18, 19, 20, 24, 27, 28, 1, 2, 3, 4, 1
disclosure of 21 29, 30, 31 5, 6, 7, 8,
income taxes. 9, 10, 11,
12, 13,
14, 15
11. Differences 21, 22 18, 29, 30, 31 1, 2, 3, 5, 1, 2,3, 6, 7
between IFRS and 6, 7, 8, 9,
ASPE. 10, 11,
14
Please note: The simplifying assumption is made that all
companies in the end-of-chapter brief exercises,
exercises and problems use the term ―deferred‖ rather
than ―future‖ for the tax-related accounts, even when
applying ASPE.
Solutions Manual 18-3 Chapter 18
, ASSIGNMENT CHARACTERISTICS TABLE
Level of Time
Item Description Difficulty (minutes)
E18-1 Terminology, relationships, calculations, Simple 10-15
entries.
E18-2 One temporary difference through three Simple 10-15
years, one rate.
E18-3 Intraperiod tax allocation. Moderate 15-20
E18-4 Identify temporary or permanent Simple 10-15
differences and direction of adjustment.
E18-5 Two temporary differences, future taxable Moderate 20-25
amounts, one rate, no beginning deferred
taxes.
E18-6 Two temporary differences, future taxable Moderate 20-25
amounts, one rate, beginning deferred
taxes.
E18-7 Two temporary differences, future taxable Moderate 20-25
amounts, change in rate.
E18-8 Reversing and permanent, future taxable Simple 20-25
amounts, no beginning balances.
E18-9 One temporary difference, future taxable Simple 20-25
amounts, one rate, no beginning deferred
taxes, prepare statements
E18-10 One temporary difference, future taxable Simple 15-20
amounts, one rate, no beginning deferred
taxes.
E18-11 One temporary difference, future taxable Simple 15-20
amounts, one rate, beginning deferred
taxes.
E18-12 One temporary difference, future taxable Simple 15-20
amounts, change in rate.
E18-13 Permanent and reversing differences, Simple 15-20
calculate taxable income, entry for income
taxes.
E18-14 One temporary difference, future Simple 15-20
deductible amounts, one rate, beginning
deferred taxes.
E18-15 One temporary difference, future Simple 15-20
deductible amounts, one rate, beginning
deferred taxes.
E18-16 One temporary difference, future taxable Moderate 20-25
amount becomes future deductible
amount, change in rate.
E18-17 One temporary difference, future Moderate 20-25
deductible amounts, change in rate
Solutions Manual 18-4 Chapter 18
