At the beginning of 2019, PT XYZ purchased an asset for Rp600.000 with an estimated useful life of 5 years and an estimated residual value of Rp50.000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. ABC’s tax rate is 40% for 2019 and all future years. At the end of 2019, which of the following deferred tax accounts and balances is reported on ABC’s statement of financial position?

Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…

A: Here in this question, we are required to calculate gain or loss from sale of asset. When any asset…

Q: res

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A: Accrual basis accounting: According to this basis of accounting, revenue should be recognized at the…

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A: Income statement is a statement which is prepared to estimate the total profit earned by the…

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A: MACRS or modified accelerated cost recovery system is tax depreciation system being used in USA. The…

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A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

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A: Foreign currency transaction needs to be translated to presentation currency at the reporting date.…

Q: Maxine Corporation purchased an investment property on January 1, 2017 for a cost of $2,200,000. The…

A: Depreciation expense is related to the drop in the value of an asset periodically because of the…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A:

Q: On December 31, 2021, Purple Company sold a building, receiving as a consideration a P4,000,000…

A: Present value of 1 for three period at 12% = 0.711780   Hence present value of P4,000,000 =…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: The extra amount paid as taxes i.e. advance payment for next year or over payment of the amount due…

Q: At the beginning of 2021, Crane Co. purchased an asset for $1200000 with an estimated useful life of…

A: The correct answer is  $978000$720000

Q: On June 1, 2021, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its…

A: Determination of adjusted basis of the asset placed in service applying for bonus depreciation.…

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A: Goodwill: It is an intangible asset  that arise from acquisition of one company by another. Excess…

Q: Robust Company purchased an investment property on January 1, 2019, at a cost of P4,000,000. The…

A: Formula: Depreciation per year = Asset value / Useful life years

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A: If accounting income is less than taxable income it means we have paid more taxes in current year…

Q: At the beginning of 2015, Pitman Co. purchased as asset for $1,200,000 with an estimated useful life…

A: Straight line depreciation=Cost-Salvage valueUseful life=$1,200,000-$200,0005=$200,000

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: A deferred tax liability or asset represents the increase or decrease in taxes payable or refundable…

Q: furnit r equi

A: Introduction Depreciation expense can be defined as a non-cash expenditure which represents the…

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A: solution : given face value of note       =4,500,000 coupon rate                 = nil market…

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A: From the info given in the question it seems that the company…

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A: Given information is: On July 1, 2018, Apache Company, a real estate developer, sold a parcel of…

Q: On January 1, 2020, Coronado Industries purchased a machine costing $346000. The machine is in the…

A: The question is based on the concept of Business Accounting.

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A: Tafty Limited has purchased an asset for 5 years for accounting and 50% for taxation purposes.

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A: Depreciation is charged to record reduction in value of assets over the period of time. Several…

Q: On July 1, 2018, Apache Company, a real estate developer, sold a parcel of land to a construction…

A: Accrual basis accounting: According to this basis of accounting, revenue should be recognized at the…

Q: Année DT FNACC 2018 2019 25 000$ 43 750$ 175 000$ 131 250$ 2020 O 32 813 $ 40 251$ 62500 $ O 26 250…

A: In the given question the depreciation is calculated by Written down value method. In the year 2018…

Q: On May 1, 2020, Hug Company leased equipment to Rave Company which expires on May 1, 2021. Rave…

A: Answer: Given Depreciation on equipment on lease for 2020 = P 360,000 Rental income of Hug= P…

Q: On May 7, 2021, Jimin Corporation sold a tract of land for P70,000 that resulted in a P30,000 gain…

A: The solution for the above mentioned question is given in the following steps for your reference.

Q: DEE Inc. purchased an equipment on March 31, 2019. The selling price of the asset is equal to its…

A:

Q: On January, 2021, Joshtin Company owned an investment property which had an original cost of…

A: Fair value is the market value of net present value of the investment or property. Any change in…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: In Straight Line Method of depreciation the depreciation is calculated by…

Q: On January 1, 2019, Nobel Corporation acquired machinery at a cost of P600,000. Nobel adopted the…

A: solution annual depreciation under straight line method =600000 / 10 =60000 Depreciation rate under…

Q: VIOLET Company acquired an investment property on March 31, 2019 for ₱4,830,000. In addition,…

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Q: On October 1, 2021, Loving Company approved a formal plan to sell a businesssegment. The sale will…

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Q: Auburn Rentals acquired an asset for $160 million in 2021. The asset is depreciated for financial…

A: Deferred tax liability is the amount of tax due and not yet paid to the federal tax authorities.

Q: On July 1, 2019, AXS COMPANY acquired an asset for P1,312,500. The asset is being depreciated over a…

A: solution: given: purchase price (cost )     =P1312500 useful life           =6 years residual value…

Q: The Salient company uses the revaluation model for its building. It acquired a building on January…

A: 1. 2018, and 2019, depreciation expenses = (450,000 - 50,000)/ 25 = $16,000 per year Accumulated…

Q: Assuming that the corporation elects the accelerated method of cost recovery for the asset and does…

A: The answer for the multiple choice question and relevant working are presented hereunder : The…

Q: WhyRU Company usually depreciates its equipment using straight line method for accounting purposes,…

A: Here in this question, we are required to calculate cumulative deferred tax liability in 2020 and…

Q: At the beginning of the year 2019. Itlog Company has an investment property acquired at a cost of $…

A: At beginning of the year 2019, Itlog company acquired property at cost = $2000000 Useful life = 25…

Q: Jasmin Company purchased an investment property on January 1, 2017 at a cost of P2,200,000. The…

A: Cost of investment property = 2200000 Use ful life = 40 years Deprecation for 2 years =2200000/40…

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.