[Dr]Income Tax Expense - current	##,###
		[Cr]Income Tax Payable		##,###


[Dr]Income Tax Refund Receivable	##,###
		[Cr]Benefits of Loss Carryback	##,###


[Dr]Deffered Tax Assets			##,###
		[Cr]Benefits of Loss Carryfoward ##,###


[Dr]Income Tax Expense - current	##,###
[Dr]Income Tax Expense - deffered	##,###
		[Cr]Income Tax Payable		##,###
		[Cr]Deferred Tax Assets		##,###

• Reconciliation of Pretax Financial Income & Taxable Income

  Pretax financial income		$##,###
  Excess of taxable revenues over revenues per books	+	##,###
  Excess of deductable amounts over expenses per books	-	##,###
  Excess of revenues per books over taxable revenues	-	##,###
  Excess of expenses per book over deductable amounts	+	##,###
  Taxable Income		$##,###

• SFAS 109 Overview
• Temporary Differences

  		[Dr]Income Tax Expense-current	##,###
  		[Dr]Income Tax Expense-deferred	##,###
  				[Cr]Income Taxes Payable	##,###
  				[Cr]Deffered Tax Liability	##,###
  		
  
  		
  		[Dr]Income Tax Expense-current	##,###
  		[Dr]Income Tax Expense-deferred	##,###
  		[Dr]Deffered Tax Asset		##,###
  				[Cr]Income Taxes Payable	##,###
  				[Cr]Deffered Tax Liabilitiy	##,###
  		
  
  
  		[Dr]Income Tax Expense-current	##,###
  		[Dr]Income Tax Expense-deferred	##,###
  		[Dr]Deffered Tax Liability	##,###
  				[Cr]Income Taxes Payable	##,###
  				[Cr]Deffered Tax Asset		##,###
  		

• Permanent Differences

  	GAAP	IRC	Temp	Perm	None
  Gross Sales	Income Now	Income Now			*
  Installment Sales	Income Now	Income when recorded	*
  Dividends[Equity Method]	Income-Sub Earnings		*
  100/80/70 % deduction	Not Exclusion	Excluded Forever		*
  Rents in Advance	Income when earned	Income when received	*
  State & Municipal Bonds interest	Income	Never Income		*
  Life Insurance Proceeds	Income	Never Income		*
  Gain/Loss on TS	Not Reported	Not Reported			*
  ORDINARY EXPENSES
  Officers Compensation	Expense	$1,000,000 Limit			*
  Bad Debt	Allowance	Direct Write Off	*
  Interest Expense[Business Loan]	Expense	Expense			*
  Interest Expense[Tax Free Investment]	Expense	Not Deductable		*
  Interest Income[Taxable Investment]	Expense	Up to Taxable Income			*
  Contributions	All Expensed	Limit to 10 % of Inc.	*
  Loss on Abandonment/Casualty	Expense	Expense			*
  Loss on Worthless subsidary	Expense	Expense			*
  Depreciation[MARCS vs SL]	Slow Depreciation	Fast Depreciation	*
  Depreciation[Bonus Depreciation(179)]	Not Allowed	Varies.$20,000(2000)	*
  Diff. Basis of Assets	GAAP Basis	IRC Basis		*
  Amortization[Goodwill/Franchise]	SL =< 40 Yrs.	SL 15 Yrs.	*
  Depletion	SL(Cost over Yrs.)	% of Sales	*
  Depletion[% in excess of Cost]	Not Allowed	% of Sales		*
  Life Insur.Exp. Corp. gets	Expense	Not Deductable		*
  Profit & Pension Exp.	Accrued	No deduction Until Paid	*
  Special Items
  Net Capital Loss	Report as Loss	Not Deductable	*
  Net Capital Loss[Carryover]	Not Allowed	3 Yrs. & 5 Yrs.	*
  Net Capital Loss[Shareholder Dealing]	Report as Loss	Not Deductable		*
  Penalties	Expense	Not Deductable		*
  Est.Liab.Contingency/Warranty	Accrued	Not Deducttion Until Paid	*
  Federal Income Taxes	Expense	Not Deductable		*
  Bond Sinking Trust Fund	Exp./Loss/Gain	Exp./Loss/Gain	*	*	*
  Lobbying/Political	Expense	Not Deductable		*

• Computation of Defferred Tax Liabilities
• Tax Rates Used
• Defferred Tax Expense
• Valuation Allowance

  		[Dr]Deffered Tax Asset		##,###
  				[Cr]Benefits of Loss Carryfoward ##,###
  				[Cr]Income Tax Expense-deffered	 ##,###
  		
  
  		[Dr]Benefits of Loss Carryfoward ##,###
  		[Dr]Income Tax Expense-deffered	 ##,###
  			[Cr]Allowance to Reduce Deffered Tax
  				Asset to Realizable Value	##,###
  		
  
  		[Dr]Income Tax Expense-current	##,###
  		[Dr]Income Tax Expense-deffered ##,###
  		[Dr]Allowance to RDTARV		##,###
  			[Cr]Income Tax Payable		##,###
  			[Cr]Deffered Tax Asset		##,###
  			[Cr]Benefits of Loss Carryfoward##,###
  		

• Enacted Change in Tax Law or Rates
• Balance Sheet Presentation
• Income Statement Presentation
• Common Stock Investment