Acer, Inc. reported a taxable income of P8,000,000 in its Form 1702 for its first year of operations, calendar year 2020. Below are the differences between taxable and financial income: ·         Excess tax depreciation over accounting depreciation: P500,000 ·         Revenue collected for tax in excess of accounting revenue: P2,000,000 ·         Tax penalties expensed in the income statement: P200,000 Income tax rate is 30%. What is the NET DEFERRED TAX EXPENSE for 2020?   a. 450,000 benefit b. 450,000 expense c. 510,000 benefit d. 510,000 expense

Q: Sunland Co. at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Here litigation expense is deferred tax asset and extra depreciation is deferred tax liability. The…

Q: or the year ended Dec. 31, 201X, CACA Co. reported pre-tax financial income of 9,500,000. Its…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: Jolens Company reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included…

A: Calculate taxable income.

Q: Larkspur Corporation began operations in 2020 and reported pretax financial income of $206,000 for…

A: Depreciation expense is a kind of operating expense that is reported at the end of the periodic…

Q: For the year ended December 31, 2021, THREE Company reported pre-tax financial income of P7,500,000.…

A: Total Income Tax payable = Taxable income x tax rate = 6500000 x 30% = 1,950,000

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Step 1 For the computation of net income after tax in accounting purpose, there is no consideration…

Q: ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC…

A: The Total Incone tax expense will be P5,650,000.

Q: For the year 2020, Tonkatsu Company reported income tax expense of P110,000. Income tax payable at…

A: Calculation of amount of income tax paid during the year... Income tax payable for 2019::P90,000..…

Q: In 2020, Amirante Corporation had pretax financial income of $168,000 and taxable ­income of…

A:

Q: a) Determine the taxable income and income tax payable for the year to 30 June 2020.  b) Determine…

A: Income: Income includes all the income that belong to the taxpayer, both taxable and non-taxable.…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Journal Entry: A journal entry refers to the logging of a operations into accounting items of…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: The question is based on the concept of taxation accounting

Q: BC Corporation computed a pretax financial income of $6,000,000 for the year ended December 31,…

A: solution  given The tax rate for year 2019 = 32% we need to use the current tax rate for determining…

Q: For the year ended December 31, 20x1, Tyre Co. reported pretax financial statement income of…

A: Formula: Current tax expense for 20x1 = Taxable income x tax rate

Q: Cris Company reported the following results for the year ended December 31, 2020, its first year of…

A: If Taxable income  is greater than  income  as per books of accounts then it will result  in…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: The following computations are done in the records of the Landmark Company.

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A:

Q: Sunland Corporation began operations in 2020 and reported pretax financial income of $212,000 for…

A: Solution: Introduction: Deferred tax is an item on the balance sheet of the entity, for excess…

Q: Sunland Co. at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Here depreciation  will  be future  Taxable because  it is a Taxable temporary difference here.…

Q: Determine the taxable income and income tax payable for the year to 30 June 2020. (2.5 Marks)…

A:

Q: Regine Company computed a pre-tax financial income of P6,000,000 for the year ended December 31,…

A: Income subject to tax =  pre-tax financial income -  Nontaxable revenue + Nondeductible expense =…

Q: Baltimore inc reported pretax gaap income of $45,000 in 2020. The company determined it had deducted…

A: The first step is to compute the taxable income of the business. For computing the taxable income,…

Q: Determine the taxable income and income tax payable for the year to 30 June 2020? Prepare the…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: okwa't Baboy Company prepared the following reconciliation of income per books with income per tax…

A: Formula: Total provision for income tax = Taxable income x Tax rate

Q: Integrity Company reported pre-tax financial income of P400,000 for 2022. In the computation of…

A: >Current Liability is a liability that is to be paid within a short period of time, say within a…

Q: Tokwa't Baboy Company prepared the following reconiliation of income per books with income per tax…

A: Solution: Total provision for Income tax = Book income before taxes * Tax rate

Q: t December 31, 2022 Mindoro Corporation’s taxable profit is P5,000,000. The following items are the…

A: Lets understand the basics. When there is temporary taxable differencce arise between the taxable…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Deferred tax assets = Net operating loss x enacted tax rate = $440,000 x 25% = $110,000

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Following are the answers to given questions

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability…

A: Deferred Tax for the Year Tax depreciation greater than depreciation expense Deferred tax liability…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A:

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Deferred Tax Liabilities are the additional tax payable when the tax as per authorities is higher…

Q: KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the…

A:

Q: s pretax financial income of $68,400 for 2020. The following items cause taxable income to be…

A: The answers have been mentioned below.

Q: Teal Corporation began operations in 2020 and reported pretax financial income of $224,000 for the…

A: Deferred Tax Liability=Excess of tax depreciation over book depreciation×Tax rate

Q: The books of Chicago Company for the year ended December 31, 2020 showed pretax income of P720,000.…

A: Current tax liability shall be measured at the amount expected to be paid to the taxation…

Q: osh Company reports pretax financial income of P700,000 for 2020. The following caused taxable…

A: Solution: Taxable income for 2020 = Pretax income - Depreciation on the tax return is greater than…

Q: . Pine Corporation’s books showed pretax income of P600,000 for the year ended December 31, 20x1. In…

A: Income tax liability will be calculated on the taxable income of the business. There may be some…

Q: Marigold Company reports pretax financial income of $72,000 for 2020. The following items cause…

A: Compute taxable income and income taxes payable for 2020.

Q: What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?

A: Calculate the balances of the deferred tax liability and deferred tax asset at 30 June 2020.…

Q: Ayayai Corporation began operations in 2020 and reported pretax financial income of $230,000 for the…

A: Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes…

Q: What amount shall be reported as current tax liability?

A: An entity makes tax payments after availing all the deduction or benefits provided by the act and…

Q: In 2020, Sandhill Corporation had pretax financial income of $172,000 and taxable income of…

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.