Lecture - Income Taxes, Part 1 (Intermediate Financial Accounting II)

This video begins our lecture for Chapter 18, Income Taxes. We will cover our first five learning objectives: 1. Understand the importance of income taxes from a business perspective; 2. Explain the difference between accounting income and taxable income and calculate taxable income and current income taxes; 3. Explain what a taxable temporary difference is, determine its amount, and calculate deferred tax liabilities and deferred assets; 4. Prepare analyses of deferred tax balances and record deferred tax expense; and 5. Explain the effect of multiple tax rates and tax rate changes on income tax accounts, and calculate current and deferred tax amounts when there is a change in substantively enacted tax rates. This is a heavy chapter and it is important you understand the concepts and work through the related tutorial questions. Chapter 18 Part 1 Lecture #12 (overall)