An entity computed its pre-tax income in its GAAP compliant books at P2,450,000 while its income per income tax return properly computed at P2,850,000. There has been a temporary difference causing the discrepancy between the two amounts. The tax rate is 30%. How much is the Deferred Tax Liability of the company to be presented in its statement of financial position? A. P120,000 B. P855,000 C. P735,000 D. P0

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: An entity reported pretax financial income of P8,000,000 for the current year. The taxable income…

A: Total tax payable = taxable income x income tax rate = P7,000,000 x 30% = P2,100,000

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: An entity computed its pre-tax income in its GAAP compliant books at P2,450,000 while its income per…

A: The tax owed and unpaid for the current tax year is defined as the deferred tax liability. Deferred…

Q: A. At the end of the first year of operations, an entity had taxable temporary differences totaling…

A: Net temporary differences = deductible temporary differences - taxable temporary differences =…

Q: An entity computed its pre-tax income in its GAAP compliant books at 2,450,000 while its income per…

A: Given information is: An entity computed its pre-tax income in its GAAP compliant books at 2,450,000…

Q: Compute for the tax due of the following individuals using the RA 10963 tax table. Show…

A: As per the RA 10963 tax table, the Tax rate structure for individuals having an only business income…

Q: 1) The estimate of current tax made by Boo Ltd for the year ended 31 December 2019 was £15,000…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Youngman Corporation has temporary differences at December 31, 2017, that result in the following…

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

Q: GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $900000…

A: Deferred Tax asset: Deferred tax asset is an assets that results from overpayment or advance payment…

Q: An entity reported pretax accounting income of P5,000,000 for the current year. The taxable income…

A: Solution: Total income tax expense for the current year = pretax accounting income * tax rate

Q: Fashion Inc. is public Corporation reported the following results for its first thrce years of…

A: Net income after tax for 2019  $50000 - 30% x $50000 = $35000 for 2020, the concern has net loss of…

Q: haw Corp reported pretax book income of $1,000,000. Included in the computation were favorable…

A: Deferred Income Tax When a company postpones the payment of income tax in a financial year Deferred…

Q: An entity reported pretax financial income of P8.000,000 for the current year. The taxable income…

A: Income tax is paid on the taxable income. Taxable income is calculated after making the adjustments…

Q: Which of the following statements is false?   A. A corporation must file a Federal income tax…

A: Corporation refers to the entity which is owned through shareholders, who elect the BOD (Board of…

Q: Youngman Corporation has temporary differences at December 31, 2017, that result in the following…

A: Deferred tax asset: When the income tax expense account is more than the income tax payable account,…

Q: Zimt AG presents its fi nancial statements in accordance with US GAAP. In 2007, Zimtdiscloses a…

A:

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

A: A deferred tax asset is an item on the balance sheet that results from an overpayment or advance…

Q: An entity reported pretax accounting income of P5,000,000 for the current year. The taxable income…

A: The tax expense is calculated on the taxable income instead of accounting income. The tax expense is…

Q: Woody Corp. had taxable income of $8,000 in the current year. The amount of depreciation reported in…

A: Temporary difference = depreciation as per tax return - depreciation as per income statement = 3000…

Q: At the end of the first year of operations. an entity had taxable temporary differences totaling…

A: Calculation of Deferred tax expense / Deferred tax benefit :- Deferred tax expense =  taxable…

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: For the year ended December 31, 20x1, An entity reported pretax financial statement income of…

A: Income Tax Expenses are reported in two components: 1. Current Portion 2. Deferred Portion

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: 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: 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: EZ, Inc., reports pretax accounting income of $427,000, but due to a single temporary difference,…

A: Deferred Tax: Deferred tax is an amount i.e. computed on the basis of tax liability on the income as…

Q: An entity reported the following assets and liabilities at year end: Amount Property Inventory 7M…

A: Dear student, since you have asked multiple questions we will answer only one question as per…

Q: To compute the provision for income tax, the following The entity made corporate estimated tax…

A: >Due to certain factors, there exists a difference between Pretax Financial Income and Taxable…

Q: An entity computed its pre-tax income in its GAAP compliant books at P2,450,000 while its income per…

A: Deferred tax liability is the tax on temporary taxable difference and temporary difference is the…

Q: At year-end of the first year of operations, Liezl Company had taxable temporary differences…

A: Taxable income for the year = Pretax financial income + taxable temporary difference - deductible…

Q: rary differences that will increase taxable income next year. Assuming that Lucas has no other…

A: The correct answer is Current deferred tax liability.

Q: Compute for the tax due of the following individuals using the RA 10963 tax table. Show…

A: An individual having only a business income of P2,410,000 will fall under the following tax…

Q: Coronado Corporation has temporary differences at December 31, 2020, that result in the following…

A: Total Deferred Tax Asset = $63,800 + $24,900                                        = $88,700 Total…

Q: An entity was organized on January 1, 2021. The entity had pretax accounting income of P5,000,000…

A: >Most of the time, there exist a difference between Pretax financial income and taxable income as…

Q: Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell…

A: NOL IS NET OPERATING LOSS IT MEANS WHEN TOTAL EXPENSES EXCEEDS TOTAL INCOMES . NOL CAN BE CARRIED…

Q: Youngman Corporation has temporary differences at December 31, 2020, that result in the following…

A: Deferred tax asset: When the income tax expense account is more than the income tax payable account,…

Q: On December 31, Year 1, ABC Corp had a deferred tax asset of $56,470. On December 31, Year 2, the…

A: Deferred tax asset is basically overpayment or sometimes advance payment of taxes.

Q: There was no homework solution for this answer either for me to check my answer.   Willingham,…

A: Yes, the Journal entry provided by you is correct and I am also providing you the solution for…

Q: P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The…

A: Tax expenses for a particular year is reported as :   CURRENT TAX DEFERRED TAX

Q: On 1 January 20X3, Highmark Corp. had the following deferred tax balances: Deferred income tax anset…

A: Journal entries refers to the process of systematic documentation of the financial transactions of…

Q: GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $9 00 000…

A: Deferred tax assets and liabilities must be based on expected future tax rates - Generally, assume…

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: For the year ended December 31, 20x1, An entity reported pretax financial statement income of…

A: As per provisions of IFRS, an entity is required to create a deferred tax for the temporary…