ABC Corporation prepared the following reconciliation for its first year of operations: ·      Pretax financial income for 2020- P1,200,000 ·      Tax exempt interest- P100,000 ·      Taxable temporary difference - P300,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2020 is 28%.  What amount should b

Q: XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

A: Pretax income: It is generally the income of the entity in which all the expenses, interest and…

Q: Ivanhoe Company has the following two temporary differences between its income tax expense and…

A: Income tax (IT) is a periodic expense for the firm which firm has to pay to the government based on…

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $30 million and…

A: Journal: Recording of a business transactions in a chronological order.

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000. The…

A: Computation of Required balance and recognition of Deferred tax liability and Deferred tax Assets…

Q: BL Co. reported a deferred tax liability of $15M for the year ended December 31, 2020, related to a…

A: (1) Retained earnings represent the earnings of the company that has been earned due to the business…

Q: Oxford Corporation began operations in 2020 and reported pretax financial income of $225,000 for the…

A:

Q: Integrity Company computed a pre-tax financial income of P2,200,000 for its first year of operations…

A: According to the given question, we are required to compute the total income tax expense in 2021.…

Q: Wheaton Inc. reported the following results for its first three years of operations:   2019 Income…

A: After-tax net income (loss) reported for 2020

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

A:

Q: During 2019, Holmes Co. reports pretax financial income at $762,300 and a taxable income of…

A: Pretax financial income- It is that income of the entity which it earns after deducting all the…

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: Ivanhoe Company has the following two temporary differences between its income tax expense and…

A: In Balance Sheet  Deferred tax asset 2022 = Deferred tax asset 2020 + Deferred tax asset 2021 +…

Q: J-Matt, Inc., had pretax accounting income of $319,000 and taxable income of $352,000 in 2021. The…

A: The temporary difference due to estimated product warranty costs would result in deferred tax asset.…

Q: Sherrod, Inc., reported pretax accounting income of $76 million for 2021. The following information…

A: Every business must be evidenced in at least two places, according to the logic of a journal entry…

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $16 million and…

A: Part 1:

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

A: Note:  income tax provision is created on taxable income.   Total provision for income tax =…

Q: Visayas Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Journal entry: The first step in accounting is a journal entry, which is used to record a business…

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: J-Matt, Inc., had pretax accounting income of $307,000 and taxable income of $328,000 in 2021. The…

A: Income Tax expense and Deferred Tax Asset: The expense that is mandatorily is to be paid by an…

Q: The estimated taxable income for Love Corporation on January 1, 2021, was P80,000, P100,000,…

A: As per IAS 34, interim financial reporting, when there is a change in annual effective tax rate,…

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: ABC Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Solution: Taxable income = Pretax income - Tax exempt interest - Taxable temporary difference =…

Q: Bramble Company has the following two temporary differences between its income tax expense and…

A: Taxable income: It is the income calculated as per the tax laws and on which the applicable tax…

Q: Four Square Services Corporation estimates that its 2021 taxable income will be $1,000,000. Thus, it…

A: Given:Estimated taxable income for 2021=$1000000Liability=$210000To compute:Minimum quarterly…

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: ABC Corporation provides you with the following information for the 2020 tax year, which was the…

A: Tax is the charge which is charged on the taxable income of the taxpayer earned during the year. The…

Q: Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31,…

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

Q: At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax…

A: Future deductable amount = 400000*27% = $108000 Amount that need to be deductable due to change in…

Q: Keira's Kites Inc. reported a deferred tax liability of $40,000 at the beginning of 2020. At the end…

A: (a) Calculate income tax payable for 2020.

Q: Mini, Inc., earns pretax book net income of $1,132,000 in 2020, its first year of operations. Mini…

A: There are two types of differences can arise in the accounting. One is temporary difference and…

Q: Shwonson Industries reported a deferred tax asset of $7.75 million for the year ended December 31,…

A: Following is the answer to the given questions

Q: Force Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: A journal entry is the first step—and an essential function—of the accounting process. Journal…

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The…

A: Net deferred tax assets on 12/31/2021 = (Taxable temporary differences - Deductible temporary…

Q: During 2020, Marigold Co.’s first year of operations, the company reports pretax financial income at…

A: Formulas:

Q: The following information is taken from Igado Company’s 2020 financial records: Pretax accounting…

A: Deferred tax asset = Accrued warranty in excess of actual warranty expenditures X Tax rate for 2021)…

Q: Apple Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Current  portion and deferred  portion  of income  tax provisions  are two  types of provisions in…

Q: Blossom Corporation began 2020 with a $57,040 balance in the Deferred Tax Liability account. At the…

A: Temporary difference / Future taxable amount = $434,000 Deferred tax liability at the end of 2020 =…

Q: Blossom Corporation reported the following results for its first three years of operation: 2020…

A: A deferred tax asset represents the overpayment or advance payment of taxes. It is the opposite of a…

Q: For its current tax year, Ilex Corporation has ordinary income of $250,000, a short-term capital…

A: Tax is a liability that has to be paid to the government that acts as revenue for the government.…

Q: Ivanhoe Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Solution: Taxable income = Pretax income - Taxable temporary differences = $285,200 - ($56,200 +…

Q: Shwonson Industries reported a deferred tax asset of $9.75 million for the year ended December 31,…

A: Deferred tax asset= $9.75 million Temporary difference= $39 million Tax rate=25% Taxable income in…

Q: Buffalo Company has the following two temporary differences between its income tax expense and…

A:

Q: J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $376,000 in 2021. The…

A: Income tax is the kind of tax, which the government imposes on the income generated through…

Q: Required: What is the charge for income tax expense that will appear in the statement of profit or…

A: D. $8,000

Q: Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31,…

A:

Q: J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2021. The…

A: Given information is: J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of…

Q: ABC Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Solution: Taxable income for 2020 = Pretax financial income - Tax exempt interest - Taxable…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Solution:- a) Computation of taxable income and income taxes payable for 2020 as follows:- Note:-…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.