. Pine Corporation’s books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered:  Gain on involuntary conversion (expropriation) P350,000  Depreciation deducted for tax purposes in excess of depreciation   deducted for book purposes 50,000  Estimated tax payments during 20x1 70,000  Income tax rate 30%  What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?

Q: For the year ended 30 June 20X4, Margorie Corp generated taxable operating income of CU 1,200,000 of…

A: Deferred Tax Liability: it records the fact that the company will pay more income tax in future due…

Q: Compute BBI’s tax expense for financial statement purposes.                 Compute BBI’s…

A: Tax expenses: Tax expenses can be defined as the liability owed by the corporations and the…

Q: Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts…

A: Solution Given Pre tax income 100,000 Tax rate 30%    Depreciation in the financial…

Q: Pampie Company reported in the income statement for the current year pretax income of Php400,000.…

A: Tax expense is the amount of tax that the entity has paid on its taxable income.

Q: During the year 20x4, the Altomonte company presented a financial income before contributions of $…

A: Income tax payable  = Taxable income  × tax rate

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, La Puendia Company reported the following: Income before tax for accounting…

A: Deferred tax: When accounting income is different from income under tax laws, it is called as…

Q: The reported pretax financial income of Luciano Company is P1,800,000 and current income tax rate is…

A: Financial Income 1800000

Q: Munoz Corp.'s books showed pretax financial income of $3,600,000 for the year ended December 31,…

A: federal income tax liability on its December 31, 2021 balance sheet = [Gain on involuntary…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: For the following scenario, determine the dollar amount of book-tax difference (if any) written as a…

A: Lets understand the basics. Temporary different is a temporary difference between book profit and…

Q: amount should Munoz report as its current income tax liability on its December 31, 2022 statement of…

A: Income tax liability refers to the amount which is required to pay to the authorities of taxation.…

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: At the beginning of 2021; Cullumber, Inc. had a deferred tax asset of $26000 and a deferred tax…

A: Taxable Income is Income as per Tax Laws . This Income can be different from accounting due to mainy…

Q: 1. Pine Corporation's books showed pretax income of P600,000 for the year ended December 31, 20x1.…

A: As per the guidelines, only one question is allowed to be answered. Please resubmit the question.…

Q: Parker Company identifies depreciation as the only difference for future taxable amounts. In Year 1,…

A: The deferred tax asset or liability is created out of timing difference. There may be some items…

Q: 9. Stone Co. began operations in 20x1 and reported P225,000 in income before income taxes for the…

A: solution concept Deferred tax asset / liabilities is created for the timing difference . For the…

Q: The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed pretax income of…

A: Taxable income = pretax income - excess of depreciation + excess of income  = 720000-32000+24000 =…

Q: The accounting profit before tax of Lindfield Ltd for the year ended 30 June 2022 was $150,000,…

A: The current tax liability seems to be the expected sum of tax or incurred tax obligation on earnings…

Q: Stone Co. began operations in 20x1 and reported P225,000 in income before income taxes for the year.…

A: The question is related to the Accounting for taxes on income. The applicable tax rate for the…

Q: Jin Company’s income tax return showed taxable income of P4,000,000 on which a tax liability of…

A: Taxable Income: P4,000,000 Accelerated Depreciation: P500,000 Financial Depreciation: P400,000…

Q: 4. For the year ended December 31, 20x1, Tyre Co. reported pretax financial statement income of…

A: The question is related to the Accounting for taxes on income. Current tax expenses  is the amount…

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: For the events described below, select the taxrelated term from the following list that best…

A:

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: At the end of the year, the deferred tax asset account had a balance of $12 million attributable to…

A:

Q: At the end of the year, the deferred tax asset account had a balance of $4 million attributable to a…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: At the beginning of 2021; Cullumber, Inc. had a deferred tax asset of $26000 and a deferred tax…

A: Taxable income is also described as adjusted gross income which is derived by deducting deduction or…

Q: Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable…

A: Income tax is a liability of every individual toupee to the government on the basis of their taxable…

Q: o. computed a pre-tax financial income of 15,000,000 for the year ended Dec. 31, 201X. In preparing…

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

Q: At December 31, DePaul Corporation had a $16 million balance in its deferred tax asset account and a…

A: Multiple Temporary DifferenceIt is very unlikely to have a single temporary difference in any…

Q: . Compute BDI’s tax expense for financial statement purposes. b. Compute BDI’s tax payable to the…

A: "Since you have posted a question with multiple sub-parts, we will solve the first 3-sub parts for…

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: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…

A: Earnings before tax = P9,000,000 Rent received in advance = P2,000,000 Corporate income tax rate =…

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

A: Following are the answers to given questions

Q: The accounting profit before tax of Topsy Limited for the year ended 30 June 2021 is $1,600,000.…

A: Summary of the information provided in the question : current year accounting profit before taxes =…

Q: ense                      110,000 Depreciation expense for tax purposes     120,000 c.  Compute…

A: Since you have posted a question with multiple sub-parts , we will solve the first 3 sub-parts for…

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

A: AS per US federal corporate tax rate, the tax rate for year 2020 will be taken as 21% to solve the…

Q: GUCCI Corp. in its first year of operations has the following differences between the carrying value…

A: The tax differences that may arise due to the effect of the time difference are known as deferred…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :    Interest…

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

A: Income tax liability for 2020 = income tax expense - ending deferred tax liability + beginning…

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: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

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.