For the year ended December 31, 2021, Irene Company reported pretax accounting income of P6,000,000. The taxable income was P7,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 30% and the entity made no estimated tax payment in the current year. What amount should be reported as total income tax expense for the current year? O 2,100,000 O 1,800,000 O 1,000,000 O 1,100,000

Q: Alvis Corporation reports pretax accounting income of $320,000, but due to a single temporary…

A:

Q: 4,000,000. The difference is due to rental received in advance. Rental income is taxable when…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: Alvis Corporation reports pretax accounting income of $400,000, but due to a single temporary…

A: Calculate the net income of Company Alvis’s:

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

A: Deferred tax: When accounting income is different from income under tax laws, it is called as…

Q: Required: Assuming a tax rate of 21%, what will be Yebo’s net income? What will Yebo report in the…

A:

Q: Roth Inc. has a deferred tax liability of $68,000 at thebeginning of 2018. At the end of 2018, it…

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

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: Teri Hatcher Inc., in its first year of operations, has the following differences between the book…

A: (a) Required journal entry:

Q: For the year ended December 31, 2021, THREE Company reported pre-tax financial income of P7,500,000.…

A: Total Income Tax payable = Taxable income x tax rate = 6500000 x 30% = 1,950,000

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: 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: Integrity Company computed a pre-tax financial income of P2,200,000 for its first year of operations…

A: According to the given question, we are required to compute the total income tax expense in 2021.…

Q: Ajax Corporation had taxable income of $114,560 during 2021. Ajax used MACRS for tax purposes…

A: Accounting income and taxable income of business can be different due to some temporary differences…

Q: The following taxable income data is available for ACME Incorporated: Year Taxable Income Tax Rate…

A: Income statement- The Income Statement is one of a company’s heart fiscal statements that…

Q: a) Determine the taxable income and income tax payable for the year to 30 June 2020.  b) Determine…

A: Income: Income includes all the income that belong to the taxpayer, both taxable and non-taxable.…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Journal Entry: A journal entry refers to the logging of a operations into accounting items of…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: The question is based on the concept of taxation accounting

Q: KreamyKeyk Company, in its first year of operations, has the following difference between the…

A: 1. Deferred tax liability to be reported in KreamyKeyk's statement of financial position at December…

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…

Q: Alvis Corporation reports pretax accounting income of $400,000, but due to a single temporary…

A:

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

A: The following computations are done in the records of the Landmark Company.

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: Hurricane Ltd reports financial income of $100,000 for 2019. The following items cause taxable…

A: Income tax: Income tax refers to the direct tax levied on individual person or business and…

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: 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: ZMAN Company reported a taxable income of $400,000 for 2019. The cumulative taxable temporary…

A: The temporary difference is the difference between the taxable income and pretax income of a…

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

A: Deferred Tax Liability: The amount of tax that a company has paid less than that of the actual tax.…

Q: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…

A: Solution: Financial income subject to tax = taxable income - Excess book depreciation - Accrual of…

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 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Deferred tax assets = Net operating loss x enacted tax rate = $440,000 x 25% = $110,000

Q: Alvis Corporation reports pretax accounting income of $300,000, but due to a single temporary…

A: Since taxable income is less than pre tax income, a future taxable amount will occur once the…

Q: a) Determine the taxable income and income tax payable for the year to 30 June 2020. b.Determine by…

A: Income:   Income includes all the income that belong to the taxpayer, both taxable and non-taxable.…

Q: A company's trial balance at 31 December 2021 shows a debit balance of GHS700,000 on current tax and…

A: The tax charges for the year are the sum total of the tax already paid in the current year and any…

Q: At December 31, 2019, Sunland Company had a net deferred tax liability of $361,200. An explanation…

A: Deferred tax assets are the assets which would lead to reduction in tax liability in future years.…

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

A:

Q: David Company, organized on January 1, 2021, had pretax accounting income of P5,000,000 and taxable…

A: Total income tax expense in the income statement for 2021 = pretax accounting income X enacted tax…

Q: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…

A: taxable income of P1,658,000

Q: KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the…

A:

Q: Teal Company reports pretax financial income of $72,600 for 2020. The following items cause taxable…

A: Taxable income = Pretax financial income + Excess rent collected + Fine paid for pollution

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

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

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: Pretax financial income for Lake Inc. is $300,000, and its taxable income is $100,000 for 2021. Its…

A:

Q: A company had pretax financial income of $796,000 in 2021. During 2021, the following items cause…

A: Taxable income = Financial Income + Expenses disallowed under tax - Income not taxable in current…

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: 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: Roth Inc. has a deferred tax liability of $68,000 at the beginning of 2021. At the end of 2021, it…

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

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.