Corporate taxable income is based on an income statement that is similar to income statements...
Question:
Corporate taxable income is based on an income statement that is similar to income statements prepared for financial reporting. It has Revenues less expenses equals income. How is the computation for personal taxable income different from this income statement concept? Why do you think these differences exist?
Income Taxes:
Income taxes are a tax levied by the US government directly on income earned. Corporate taxes are taxes paid by companies on their gains and profits. Individual income taxes are taxes paid by individuals.
Answer and Explanation: 1
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View this answerThe biggest difference between corporate taxes and individual taxes is accrual vs cash accounting. Corporations report their revenue and expenses on...
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Tax Structures: Types & Concept
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Chapter 5 / Lesson 9
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Learn about tax structures and see how they work. Explore three types of tax structures, including regressive tax, progressive tax, and proportional tax structures.
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