BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000  Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. Question: What is the amount of deferred tax asset? What is the net income after tax?

Q: The pretax financial income (or loss) figures for Whispering Company are as follows. 2016…

A:

Q: Feagler Company’s current income taxes payable relatedto its taxable income for 2017 is $460,000. In…

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: Oxford Corporation began operations in 2017 and reported pretax financial income of $225,000 for the…

A:

Q: At the end of 2016, its first year of operations, Slater Company reported a book value for its…

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

A: Deferred tax liability = Beganning deferred tax asset - Ending deferred tax asset balance = P800,000…

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: In its December 31, 2016, balance sheet, Shin Co. had income taxes payable of $13,000 and a current…

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Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

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

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: A company has a temporary difference due to depreciation. For fiscal year 2012, its Income Tax…

A: Solution: Correct Journal entry is as under:   Account title Debit Credit Income tax expense…

Q: Rosel company, which began operations on January 1, 2017, has elected to use cash  basis accounting…

A: Sales to be reported for December 31, 2018 = Balance of Accounts receivable as on December 31, 2018…

Q: Conlin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid…

A: Workings:

Q: At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of the use…

A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: What is the net income after tax?

A: Given information is: BDO Company reported the following on December 31, 2015: Income before tax for…

Q: The entry to record the income tax expense would include a

A: Answer:   Credit to income tax payable.

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

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: Shetland Inc. had pretax financial income of $154,000 in 2017. Included in the computation of that…

A: The income taxes are computed on the basis of accounting income and temporary differences between…

Q: For calendar year 2016, sigma had a depreciation of 1,200,000 in its income statement. On its 2016…

A: Deferred tax was an tax asset or liability for the company of its future where the differences which…

Q: At the end of 2015, Payne Industries had a deferred tax asset account with a balance of $30 million…

A: Valuation Allowance:  Valuation allowance is that financial item that offsets the deferred tax…

Q: Regine Company computed a pre-tax financial income of P6,000,000 for the year ended December 31,…

A: Income subject to tax =  pre-tax financial income -  Nontaxable revenue + Nondeductible expense =…

Q: The pretax financial income (or Loss) figures for Limerick co. are as follows: 2017 83,000 2018…

A: Given Information: Tax rate for 2017 = 25% Tax rate for remaining years = 20%

Q: For the year ended December 31, 2006, Grim Company's pretax financial income was P2,000,000 and its…

A: The total income tax provision need to be reported in the following two components  1) current…

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: During 2022, Sunland Corporation had the following amounts, all before calculating tax effects:…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Bramble Corp. follows IFRS and began operations in 2020 and reported accounting income of $274,000…

A: Deferred tax Deferred tax which are described as the tax difference between the current tax and any…

Q: A company reports the following pretax income (loss) for both financial reporting purposes and tax…

A: In year 2020, there is a loss of $208,800 Tax rate in 2020 is 22% Deferred tax asset (DTA) for the…

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: t December 31, 2022 Mindoro Corporation’s taxable profit is P5,000,000. The following items are the…

A: Lets understand the basics. When there is temporary taxable differencce arise between the taxable…

Q: During 2018, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Requirement 1:   Compute the amount of tax payable.

Q: The company reported $58,000 of depreciation expense on its income statement in 2015 and $32,000 in…

A: Temporary difference =  Depreciation expense as per income tax for 2015 & 2016 - Depreciation…

Q: Bramble Inc. reports the following incomes (losses) for both book and tax purposes (assume the…

A: Income before tax means the earnings from which the tax is yet to be deducted.

Q: Lewes Company appropriately uses the installment sales method for tax purposes and the accrual…

A: Taxable Temporary Difference Taxable temporary differences are differences that will give rise to…

Q: At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of the use…

A: Gain on Disposal of Division F : $24000 X 30% = $7200 Retained Earnings : $14,100 x 30% = $4230…

Q: In 2017, Amirante Corporation had pretax financial income of $168,000 and taxable income of…

A: Tax:   A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization…

Q: The pretax financial income (or loss) figures for Teal Mountain Company are as follows. 2017…

A: Year Particulars Debit Credit 2017 Income Tax Expense 19000       Income Tax Payable…

Q: Year Pretax Income (Loss) Tax Rate 2018 $183,000 17% 2019 69,000 17 2020 (206,800) 23…

A: Amount of Loss to be Reported for Year 2020= (206,800) Loss for year will be reported as 206,800 and…

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: Lyons company deducts insurance expense of P84,000 for tax purposes in 2015, but the expense is not…

A:

Q: The pretax financial income (or loss) figures for Martinez Company are as follows. 2012…

A: Income tax expense:  Income tax expense is an expense for the company which is equal to a certain…

Q: The pretax financial income (or loss) figures for Jenny Spangler Company are as follows. 2015…

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :    Interest…

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

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: Lee Company’s current income taxes payable related toits taxable income for 2017 is $320,000. In…

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: For the year ended December 31, 2021, Jocelyn Company reported pretax financial income of…

A: Total Current tax expense for the current year = Pretax accounting income x tax rate

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: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

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

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct…

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.