3. Leer Corp.'s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows: Depreciation in the financial statements was P8,000 more than tax depreciation. The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer's effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of d. 18,600 b. 23,400 с. 21,900 a. 26,400

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: Grand Corporation reported pretax book income of $600,000. Tax depreciation exceeded book…

A: The following computations are done as per the information provided.

Q: In its first year of operations, Pioneer Natural reported pretax accounting income of $680 million…

A: Deferred tax liability implies a future liability for the entity due to partial or non-payment of…

Q: Gordon Company was started on January 1, 2010 and has two temporary differences between its income…

A: Journal entry refers to the first step in the accounting process, which signifies recording of…

Q: Sol Limited. reported earnings of $410,000 in 20X8. The company has $81,000 of depreciation expense…

A: SOL Limited's Earnings = $410000 in 20x8 Depreciation expense = $81000 CCA claimed = $122000 Tax…

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: TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net…

A: The effective tax is hypothetical tax rate  = 21%  Which is to be adjusted for permanent differences

Q: During its first year of operations, Nile.com reported a net operating loss of $15 million for…

A:

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Deferred tax liability means liability calculated by finding difference between the comapany taxable…

Q: Gina Company reported income before tax of P3,500,000 for 2020 which included the following amounts:…

A: Net income is calculated by deducting all expense from the total revenue. It includes operating as…

Q: How much of the above payments are deductible from gross income?

A: Gross income is the income which has been earned by the company when the same has been computed as…

Q: Green Corporation reported pretax book income of $1,016,000. During the current year, the net…

A: The percentage of the income of an individual that is subject to tax refers to the effective tax…

Q: The "other income" section of Pigeon Company's Statement of Comprehensive Income contains P5,000 in…

A: Other comprehensive income is calculated from the income statement of the business, which includes…

Q: At the end of the year, Badger Corporation has pretax financial income of $550,000. Included in the…

A: Income taxes payable are described as the amount which a person or business is liable to pay to the…

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

A: Taxable income =  pretax financial income + Fines paid for late payment of taxes +  Impairment loss…

Q: The Dakota Corporation had a 2021 taxable income of S20,000,000 from operations after all operating…

A: Formula: Income tax liability = Taxable income x Tax rate

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: For the current year ($ in millions), Centipede Corp. had $80 In pretax accounting Income. This…

A: Correct answer is A. $70 million

Q: Nueve Ltd. had the following pre-tax earnings and losses: Pre-tax Earnings (Loss) 20X6 20x7 20x8…

A: In an organization's accounting system, a journal entry documents a commercial transaction. The…

Q: company's current and deferred income tax expense or benefit.

A:

Q: The records of Boomer Corp, in its first year of operations, at the end of 20X8, provided the…

A: Income from accounting and taxable income are two separate concepts.. They are regulated by multiple…

Q: 1. Fattal Inc. recently reported $120,000 of sales, $75,500 of operating costs other than…

A: The statement of profit or loss of a company shows all the income earned and expenses incurred by a…

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: 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: DER Company has the following in the current year: Capital gains of $8,500 Capital losses of $18,500…

A: Solution:- the following will be included in Net Income for Tax Purposes for DER Company:-…

Q: 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Interest Income,…

A: Deductions means those items that are deducted from the gross income of the company. The deductions…

Q: f $590,000. The book–tax difference of $369,000 was due to a $205,000 favorable temporary difference…

A: Deferred income tax is a liability to the company which arises due to differences in tax laws and…

Q: The Dakota Corporation had a 2021 taxable income of $30,500,000 from operations after all operating…

A: Answer: taxable income $30500000 less interest charges -8300000 income after interest expense…

Q: 3. Leer Corporation's pretax income in 20x7 was P100,000. The temporary differences between amounts…

A: Leer Corporation's Pretax is 20x7 is P100,000  Leer's Effective Income tax Rate was 30% in 20x7 to…

Q: Alamo Inc. had $270 million in taxable income for the current year. Alamo also had a decrease in…

A: Income tax expenses are the amount of tax which an individual, organization must pay at a fixed rate…

Q: 29. For the year 2016, Sawi Ak Co. reported an income tax expense of P110,000. Income tax payable at…

A: solution given Income tax expense for 2016 P 110,000 Income tax payable , beginning of…

Q: Grand Corporation reported pretax book income of $720,000. Tax depreciation exceeded book…

A: Deferred Tax Asset: Deferred tax asset  reduces  taxable income in the future and used for  tax…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Solution: Taxable income = $265,000 Taxable temporary differences = $20,000 Tax rate = 25%

Q: 4 TarHeel Corporation reported pretax book income of $1,038,000. During the current year, the net…

A: Calculate taxable income by subtracting the sum of additional tax depreciation and deduction in the…

Q: The pre-tax income statements for Moonstone Ltd. for two years (summarized) were as follows: 20X8…

A: SOLUTION TAXABLE INCOME IS THE AMOUNT OF INCOME THAT IS USED TO CALCULATE THE TAXES OWNED BY…

Q: An entity reported the following information during the first year of operations: Pretax financial…

A: When a tax obligation is accumulated in one financial year but not paid until the following year, a…

Q: XYZ co paid $520 in dividends and $711 in interest expense. The addition to retained earnings is…

A:

Q: Minas Mining Inc. recently reported $15,000 of sales, $7,500 of operating costs other than…

A: Net Income is the reported earnings or revenues that are reported in the books of accounts of a…

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

A: Taxable income =  pretax financial income + Fines paid for late payment of taxes +  Impairment loss…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Deferred tax liability: The deferred tax liability is the excess, over received, or received in…

Q: DEF Co. reported taxable income of P8M in its income tax return for the 1st year of operations. The…

A: Introduction           Deferred tax refers to the difference between tax computed as per the…

Q: BTS Corporation reports the following information: • Correction of overstatement of depreciation…

A: Answer) Calculation of Balance of Retained Earnings on December 31, 2021 Balance of Retained…

Q: Angel Corporation reported pretax book income of $1,008,000. During the current year, the net…

A: Hypothetical tax expenses =Pretax Income × Statutory Tax=$1,008,000×34%=$342,720

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

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

Q: From the following particulars of Sriman Ltd., calculate the remuneration of Managing Director at 5%…

A: Companies Act describes about various rules for determining the remuneration payable to managing…

Q: The "other income" section of A Company's Statement of Comprehensive Income contains P5,000 in…

A: The question is related to Statement of Comphensive Income. The Statement of Comphensive Income…

Q: WEB Company had pretax financial income of P 2,500,000 in the current year. The entity made…

A: Interest received is subject to final witholding tax. It will be treated as permanent difference…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Income tax payable is the Amount of tax liability on taxable income which is to be paid.

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.