欢迎来到天天文库
浏览记录
ID:41191567
大小:4.00 MB
页数:192页
时间:2019-08-18
《McGraw-Hill - How to Read a Financial Statement》由会员上传分享,免费在线阅读,更多相关内容在学术论文-天天文库。
1、Page58CHAPTER11EXHIBIT—INCOMETAXEXPENSEANDINCOMETAXPAYABLEPage5911—IncomeTaxExpenseandIncomeTaxPayablePage60FederalandStateIncomeTaxationofBusinessProfitPleaserefertoChapter11Exhibit(page58),whichhighlightstheconnectionbetweenincometaxexpenseintheincomestatementan
2、dincometaxpayableinthebalancesheet.Asmallpartofthecompany'stotalincometaxexpensefortheyear,whichisbasedonitstaxableincomefortheyear,hasnotbeenpaidatyear-end.Thisremainingbalancewillbepaidovertothetaxauthoritiesinthenearfuture.Theunpaidportionstaysinthecompany'sinc
3、ometaxpayableliabilityaccountuntilitispaid.Thebusinessinourexampleisincorporated;thebusinessdecidedonthisformoflegalorganization(insteadofthepartnershipformorasalimitedliabilitycompany).Acorporation,beingaseparatepersonintheeyesofthelaw,hasseveralimportantadvantag
4、es.However,profit-motivatedbusinesscorporationshaveoneseriousdisadvantage—theyaresubjecttofederalandstateincometaxontheirprofit.Tobemoretechnical,thebusinessinthisexampleisaregular,or''C''corporation.Underthefederalincometaxlawsmallor"S"corporations,partnerships,a
5、ndlimitedliabilitycompaniesare"pass-through"taxentities—theseentitiespaynoincometaxthemselvesbutinsteadserveasaconduit.Eachyearalltheirtaxableincomeistransferred,orpassedthroughtotheirowners,whopayindividualincometaxontheirsharesofthetaxableincome.Thisavoidswhatis
6、calledthe"doubletaxation"ofbusinessprofit—firstinthehandsofthebusinesscorporationandsecondinthehandsofitsstockholders(totheextentthatnetincomeisdistributedascashdividendstothem).Thefirstpointtokeepinmindisthatabusinesscorporationmustearntaxableincometopayincometax
7、.Thesimplestwaytopaynoincometaxistohavenotaxableincome,ortohaveataxableloss.Ofcourseabusinesswantstoearnprofit,butearningaprofitcomeswiththeburdenofpayingincometaxontheprofit.Onceabusinessenterstheprofitzoneitissubjecttoincometax.Asecondpointtokeepinmindisthatther
8、earemanyloopholesandoptionsinthefederalincometaxcode—tosaynothingaboutstateincometaxlaws—thatreduceorpostponeincometax.Isuspectyou'reawareofhowcomplexis
此文档下载收益归作者所有