FACTS / DATA / GIVEN: Тахрауer: • Taxable period: • Receipts/earnings during the period: Resident citizen 2nd quarter Description Collections for services rendered in 2nd Amount P50,000 quarter Collections for services rendered in 1st 20,000 quarter Collections for services to be rendered in the 3rd quarter Uncollected billings in 1t quarter Uncollected billings in 2nd quarter 30,000 10,000 15,000 COMPUTE: Taxable income in the 2nd quarter using ACCRUAL basis O A. 80,000 B. 95,000 О С. 100,000 D. 115,000
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: 14-8. Wall Services computed pretax financial income of P2,200,000 for its first year of operations…
A: Answer - Part 1 - Schedule of reversal of the temporary differences - Year Working Temp…
Q: Times-Roman Publishing Company reports the following amounts in its first three years of operation:…
A: Deferred Subscription revenue is recorded on a company's balance sheet as a liability. It is treated…
Q: d in advance---------------------------------------------150,000 Interest income on time deposit…
A: Provision for tax is the liability created for taxes to be paid in future taking into account the…
Q: ounting profit before tax of Lindfield Ltd for the year as $150,000, including the following items…
A: Journal entries are those entries that include daily transactions or events and are stated in the…
Q: UMPI’s end of year pretax financial income for 2018 was $720,000. Included in it was $40,000 in…
A: Solution: Computation of Taxable Income and Taxes Payable Particulars Amount Pretax income…
Q: Case 1: The corporation income statement for the year ended December 31, 20x1 shows pre-tax income…
A: Income tax expense= current income tax expense+ deferred tax expense Calculation of taxable income…
Q: from the business: 2017 2018 2019 2020 ss income 500,000 600,000 700,000 800,000 luctions income…
A: solution : provision NOLCO means net operating loss carryover The net operating loss can be carried…
Q: Required information [The following information applies to the questions displayed below.] Arndt,…
A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…
Q: Beaver Dam Inc. (BDI) listed the following items to prepare a reconciliation between book and…
A: Solution:- a) Calculation of BDI’s tax expense for financial statement purposes as follows:- Basic…
Q: During the current year, Stern Company had pretax accounting income of $42 million. Stern's only…
A: The differences that may arise due to the variation between the value of assets and liabilities as…
Q: The reported pretax financial income of Mechado Company is P1,800,000 and current income tax rate is…
A: Taxable income = pretax financial income + Fines paid for late payment of taxes + Impairment loss…
Q: 1st statement: Taxable income from self-employment (business and profession0 is reported on a…
A: BIR Form 1701: Annual Filing of Income Tax Return shall be filled by For Self-Employed Individuals,…
Q: (Five Differences, Compute Taxable Income and Deferred Taxes, Draft Income Statement) Wise Company…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: The result of operation of MPG Corporation for 2018 whose taxable year is on a calendar year basis,…
A: The income tax credit means the tax credit a company gets when the company pays more tax than its…
Q: 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Interest Income,…
A: Deductions means those items that are deducted from the gross income of the company. The deductions…
Q: LNS Corporation reports book income of $2,890,000. Included in the $2,890,000 is $32,750 of…
A: Types of taxes include: Income tax Service tax Corporate tax Excise duty Custom duty
Q: pretax profit of P2,000,000. The income tax rate 2 Bus Co. has a The only temporary differences at…
A: Deferred Tax Liability: Deferred tax liability is a liability that is created due to a…
Q: Determine if the timing differences are temporary or permanent. Net income per books (after-tax)…
A: Due to the differences between financial accounting and tax accounting there arises some differences…
Q: Rent income received in advance 150,000 Interest income on time deposit 200,000 Depreciation…
A: 1. Statement of computation of Taxable income: Particulars Amount(P) Income before provision…
Q: Beckett Corporation has nexus with States A and B. Apportionable income for the year totals…
A: Taxable income is defined as income on which the government imposes the tax and it involves all the…
Q: Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable…
A: Income tax is a liability of every individual toupee to the government on the basis of their taxable…
Q: FACTS / DATA / GIVEN: . Тахрауer: Taxable period: Expenses/payments during the period: Resident…
A: Total Expense = Cash expense + expense Unpaid
Q: Inc. use ethod of accounting for financial reporting purposes and appropriately uses the installment…
A: Journal : It is the book where all the business transactions are recorded at first by way of debit…
Q: Flip's Pizzeria Inc. has the following financial items for the current year: Adjusted Taxable Income…
A: SOLUTION- INTEREST EXPENSE DEDUCTION= [(30% * ADJUSTED TAXABLE INCOME BEFORE INTEREST) + BUSINESS…
Q: 4. The following information is for Z Corp's first year of operations. Amounts are in millions of…
A: Introduction Accounting Income: The profit a corporation keeps from its sales revenue is known as…
Q: Times-Roman Publishing Company reports the following amounts in its first three years of operation:…
A: Amount of Deferred Subscription Revenue = Beginning balance + Subscription payments received -…
Q: 2. An entity reports profit before bonus and taxes of P1,800.00 during the year. The entity has an…
A: Tax means the mandatory payment made by assesse to the government without expecting anything…
Q: FACTS / DATA / GIVEN: • Taxpayer: • Taxable period: Receipts/earnings/balances during the period:…
A: Under cash basis, cash received in 2nd quarter will be considered income for the 2nd quarter.
Q: TV 10, a service business had the following information for the year 2018: Service Revenue –…
A:
Q: An entity reported the following information during the first year of operations: Pretax financial…
A: When a tax obligation is accumulated in one financial year but not paid until the following year, a…
Q: Times-Roman Publishing Company reports the following amounts in its first three years of operation:…
A: Introduction:- The following formula used as follows under:- Differed subscription =Beginning…
Q: 2. For the year ended December 31, 20x1, Mont Co.’s books showed income of P600,000 before provision…
A: Solution:- Calculation of the amount should Mont report at December 31, 20x1 as its income tax…
Q: A reconciliation of pretax financial statement income to taxable income is shown below for Fieval…
A: A deferred tax asset and deferred tax liability can not be offset unless prescribed
Q: QUARTERLY INCOME TAX RETURNS 2-8. The following cumulative balances during the year on income and…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: The reported pretax financial income of Mechado Company is P1,800,000 and current income tax rate is…
A: Taxable income = pretax financial income + Fines paid for late payment of taxes + Impairment loss…
Q: Interest Expense 250,000.00 Interest Income form 5/6 30,000.00 Interest Income form Bank Deposits…
A: Deductible Interest expense : Interest expense is the charge for the funds provided to the…
Q: Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018.…
A: Lets understand the basics. When current tax expense is same as income tax payable then accounting…
Q: Income Tax Payatde Notes Payable years 900 Retalned Farnings Unearned Revenues2 yean Cash Devidends…
A: Long Term Assets: These are those assets that are used by an entity for more than one year. It is…
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: ense 110,000 Depreciation expense for tax purposes 120,000 c. Compute…
A: Since you have posted a question with multiple sub-parts , we will solve the first 3 sub-parts for…
Q: Check my answers. Determine if the timing differences are temporary or permanent. Beginning…
A: Permanent differences are differences between the tax and financial reporting of revenue or expense…
Q: What amount should be reported as current provision for income tax or current tax expense for the…
A: We have to calculate tax amout for current year
Q: (Pre faration of Opein ting Activit, section-Dipect imethod) Krauss company's income statement for…
A: Direct method of cash flows statement indicates the cash inflows and cash outflows related…
Q: WEB Company had pretax financial income of P 2,500,000 in the current year. The entity made…
A: Interest received is subject to final witholding tax. It will be treated as permanent difference…
Q: ABC Company reported pretax financial income of 7,000,000 for the year ended December 31,2021. The…
A: In case where the Income as per accounting base is different from the taxable income as per income…
Q: A reconciliation of pretax financial statement income to taxable income is shown below for Fieval…
A: Deferred tax assets or liability arises due to temporary differences
Step by step
Solved in 2 steps
- A derived its income from its self-operated talpakan business. The details of his business for 2021 are as follows: Gross Receipts - P100,000.00 Operating Expenses - P50,000.00 Income taxes withheld in general - P10,000.00 Question: What is A's taxable income? Group of answer choices P40,000.00 P50,000.00 P90,000.00 P100,000.00*see attached What amount of permanent difference between accounting income and taxable income existed at year-end?a. P 520,000b. P 360,000c. P 800,000d. P 280,000ABC Corporation has the following information for the taxable year 2022: Quarter RCIT MCIT CWT 1st P200,000 P160,000 P40,000 2nd 240,000 500,000 60,000 3Rd 500,000 150,000 80,000 4th 300,000 200,000 70,000 MCIT carry-over from prior year amounts to P60,000 and excess tax credits from prior year amounts to P20,000. How much was the income tax payable for the first quarter? How much was the income tax payable for the third quarter? How much was the annual income tax payable?
- N2. Account Compute HC Inc.’s current-year taxable income given the following information relating to its 2019 activities. Also, compute HC’s Schedule M-1 assuming that HC’s federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. Gross profit from inventory sales of $310,000 (no book–tax differences). Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC’s pro rata share of the corporation’s earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL), are $300,000 (no book–tax differences). NOL carryover from prior year of $12,000. Cash charitable contribution of $50,000.An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations.The following are the differences that cause financial income to differ from taxable incomeexcess tax depreciation over accounting depreciation, P 500,000, revenue collected fortax in excess of accounting revenue, P 2,000,000 and tax penalties as an expense in theincome statement, P 200,000. The income tax rate is 30%1. What total tax expense should be reported for 2019?a. 1,890,000b. 2,400,000c. 1,950,000d. 2,010,0002. What is the net deferred tax expense or benefit for 2019?a. 450,000 expenseb. 450,000 benefitc. 510,000 expensed. 510,000 benefitE18-11 Multiple Tax Rates For the year ended December 31, 2019, Nelson Co.’s income statement showed income of $435,000 before income, tax expense. To compute taxable income, the following differences were noted: Income from tax-exempt municipal bonds $60,000 Depreciation deducted for tax purposes in excess of depreciation recorded on the books $120,000 Proceeds received from life insurance on death of an insured employee $100,00 Corporate tax rate for 2019 30% Enacted tax rate for future periods 35% Required: 1. Calculate taxable income and tax payable for tax purposes. 2. Prepare Nelson’s income tax journal entry at the end of 2019.
- Q1. Taxable income and applicable tax rates for C.J. Company’s first four years are shown below. For each year, taxable income and pretax financial income are identical. In the table below, taxable income is before any consideration of NOL carryback and carryforward. The enacted tax rates were known at 1/1/2018. Taxable Income Enacted tax rate 2018 $200 20% 2019 ($300) 15% 2020 $340 25% 2021 $210 25% Now assume that C.J. opted to carryback its 2019 NOL and carryforward any unused NOL to future years. Complete the table below for 2018 through 2021 to show the amount of income tax payable to the IRS or the refund due from the IRS for each year. Put your answer in the table below. Show tax payable as a positive number and tax refund as a negative number. Year Tax…The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate of 20% for both years.2022 information:Sales on account in the amount of $675,000Warranty expense and associated liability in the amount of $145,000No other expenses incurred.2023 information:Sales on account in the amount of $210,000Warranty repairs made in the amount of $69,000No expenses incurred.What is MK's income tax expense for 2022? Group of answer choices $121,200 $135,000 $106,000 $164,000An entity reported pretax financial income of P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P500,000 during the current year. The amount should be reported as current tax expense for the current year?
- Compute for the tax due (A,B,C) for the below taxable income based on the Income Tax Tables: TAXABLE INCOME (Annual) TAX DUE P300,000 A P500,000 B P800,000 C .Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018. Current tax rate is 40%. DR Current income tax expense $634,800 CR Income tax payable $634,800 This would imply that Select one: a. the taxable income for 2018 was different than the accounting income. b. the income tax expense reported by SHI on its income statement would be $750,000. c. the taxable income for 2018 was determined to be $1,587,000. d. All of the above. e. None of the above.1. What amount of permanent difference between book income and taxable income existed at year end?a. 520,000b. 360,000c. 800,000d. 280,0002. What amount of current tax expense should be reported? a. 786,000b. 510,000c. 750,000d. 678,0003. What amount of income tax payable should be reported?a. 498,000b. 606,000c. 330,000d. 570,0004. What amount of total tax expense should be reported?a. 714,000b. 726,000c. 642,000d. 594,000