ABC Corporation provides you with the following information for the 2020 tax year, which was the company’s first year of operation: Book Income Before Taxes $100,000,000 Book Depreciation $ 5,000,000 MACRS Depreciation $ 7,500,000 Foreign Sourced Income $ 40,000,000 Assume a federal tax rate of 21%, disregard state taxes. a. Calculate federal taxable income. b. Calculate the federal tax payable and federal tax expense. c. Given your answer above in b., is a deferred tax asset or a deferred tax liability created? Provide the journal entry needed to reflect this.

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Tax liability = Taxable income x tax rate = $84,000 x 30% = $25,200

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

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Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Income tax Payable: It refers to the amount which is required to be paid by an entity on the taxable…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Bad debts also called Uncollectible accounts expense is monetary expense which is due on creditor of…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: A.Taxable Income and Income Tax Payable for 30th June 2020: Current Tax Work Sheet for Year Ended…

Q: For the year ended December 31, 2020, Theodore Corporation reported a pretax financial income of…

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

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

Q: On its December 31, 2020 balance sheet, U Company had income tax payable of P520,000 and a current…

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Q: In 2020, R and R Company received an advance payment of Php1,000,000, which was subject to tax but…

A: Deferred tax refers to the difference in the income as per company and as per income tax. These…

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

A: Calculate taxable income.

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: a. Determine the taxable income and income tax payable for the year to 30 June 2020.

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A:

Q: rance, Inc., earned pretax book net income of $1,693,000 in 2020. Prance acquires a depreciable…

A: Working notes :-…

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: e Bron Corporation has the following information for 2021 taxable year: Quarter RCIT MCIT CWT…

A: Minimum corporate income tax (MCIT) is only eligible for carried forward in case there is MCIT…

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

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

Q: The following information was taken from the accounting records of Lancer Inc, for the year ending…

A: The question is related to computation of taxable Income for the year 2020. We will proceed with…

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…

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A: Received rent from mama co for the year 2021 in 2020, it means rent is received in advance. it is an…

Q: EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax…

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Q: ary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%,…

A: Deferred tax expense refers to the effect of income tax occured on the balance sheet of the company…

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: Bossjini Co. reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included in…

A: Given: Pre tax financial income = P6,200,000 Other income which is not taxable = P200,000 Accounting…

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

A:

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: Cranbrook Corp., reported pre-tax accounting income of $400,000 for the calendar year 2020. To…

A: Answer: Correct option is d. $73,000

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

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A:

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

A:

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

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Q: At the end of 2021, a company has a deferred tax asset with a balance of $480,000.The company has a…

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

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Q: Acer, Inc. reported a taxable income of P8,000,000 in its Form 1702 for its first year of…

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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: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: a) Tax entries for 30th June 2020 are as follows: Date Particulars Debit Credit 30-06-2020…

Q: Indigo Corporation began operations in 2020 and reported pretax financial income of $234,000 for the…

A: Deferred tax liability arises when the book depreciation is more than tax depreciation in the…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Answer 1 (a): Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

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: 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: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A:

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Deferred tax can be a notional asset or liability to think about corporate pay tax assessment a…

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

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