gross income in 2020 using the installment method

Q: PLEMACOLA, Inc. sold a piece of land on January 1, 2021. The company purchased the land for…

A: In Zero interest note or bond, the amortization process is quite simple as there is no coupon or…

Q: Gallo Light began operations in 2021. The company sometimes sells used warehouses on an installment…

A: Deferred tax liability is a tax which is due for the current period but not paid in the period. The…

Q: During 2019, Belk Corporation purchases $70,000 worth of equipment for use in its business. Belk’s…

A: This section allows the business entities to deduct the purchase price of qualifying equipment or…

Q: Skysong Corp. sold an investment on an installment basis. The total gain of $74,400 was reported for…

A: IAS 12 deals with the accounting treatment for "Income taxes"

Q: Ferrero Rocher Inc.’s only temporary difference at the beginning and end of 2020 is caused by a…

A: In the context of the given question, we are required to compute the deferred tax liability on…

Q: Jolens Company reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included…

A: Calculate taxable income.

Q: For the year ending December 31, 2021, Olivo Corporation had income from continuing operations…

A:

Q: PRANCER Company, at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Solution: income tax payable to be presented in the statement of financial position at year end =…

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Solution: Deferred tax asset = Excess accrued warranty * tax rate of 2021  = 24500*32%  = 7,840

Q: The records for Bosch Co. show this data for 2019: ●   Gross profit on installment sales…

A: Comparison of Financial Profits with Taxable profits results in the creation of either Deferred tax…

Q: Sweet and Sour Company had pretax accounting income of P2,400,000 during 2020. Sweet and Sour…

A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: On Jan 1,2020, Kim Co. supplies amounted to P2,500. During the year, thecompany purchased P1,200…

A: Office supplies means the any product used in office on regular basis. We can not say that amount of…

Q: Scarlet Company had pretax accounting income of P2,400,000 during 2020. Scarlet Company’s temporary…

A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: In 2021, Crane Company accrued, for financial statement reporting, estimated losses on disposal of…

A: Deferred Tax (Asset) This type of tax occurs on the Asset side of the balance sheet due to the…

Q: On January 1, 2021, Sheridan, Inc. purchased a machine for $2180000 which will be depreciated…

A: Solution Concept If in case due to temporary difference The income for tax reporting is less than…

Q: In early January 2020, HUMID Corporation applied for a trade name, incurring legal costs of…

A: Trademark shall be measured at costs that are directly associated with its registration. In other…

Q: nancial income P400,000 Estimated litigation expense 1,000,000 Installment sales (800,000)…

A: Income tax refers to the mandatory charge levied by the government over the income gained by an…

Q: . JBC Company, a car rental company, acquires vehicles with the intention of holding them as rental…

A: Fixed assets means the asset which is used by company for many years to come for the purpose of…

Q: On June 30, 2021, Mill Corp. incurred a 100,000 net loss from disposal of a business segment. Also,…

A: Here we will apply the accounting rule that for an interim report all revenues and gains have to be…

Q: In 2018, a domestic corporation paid for the monthly rental of a residential house of its branch…

A: Fringe benefits tax is applicable on the fringe benefits. Fringe benefits means services or…

Q: Tokwa't Baboy Company prepared the following reconciliation of income per books with income per tax…

A: Note:  income tax provision is created on taxable income.   Total provision for income tax =…

Q: Lolo Inc. had pre-tax accounting income of P900,000 in 2020, its first year of operations. During…

A: Received rent from mama co for the year 2021 in 2020, it means rent is received in advance. it is an…

Q: On January 1, 2019, Lala Company received an P800,000, 8%, 2 year note from Move Corporation as…

A: Annual installment = Total amount to be collected / no. of installment = 600000/3 = P200,000

Q: On January 1, 2022, Malia sold property carried in inventory at a cost of P1,312,710 for P2,100,000.…

A: Here discuss about the details of the installment sales and find out the realization gross profit…

Q: NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: Bossjini Co. reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included in…

A: Given: Pre tax financial income = P6,200,000 Other income which is not taxable = P200,000 Accounting…

Q: The records for Pharoah Co. show this data for 2021: ●   Gross profit on installment sales recorded…

A: Depreciation refers to the fall in the historical value of an asset each year. Depreciable amount is…

Q: n December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,900,000 for $5,000,000.…

A: Computation of gross profit ratio :- Gross profit ratio= (Sales-costs)/ Sales…

Q: On June 30, 2021, Coco Inc. incurred a P2,000,000 net loss from disposal of a business segment. Also…

A: The question is related to Interim period is a period less than one fiscal year. Generally…

Q: March 1, 2019, Tina Corporation reported the following business income and expenses: Sales…

A: The net income is calculated as difference between total revenue and total expenses incurred during…

Q: PRANCER Company, at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Total income tax = Taxable amount x income tax rate = 250000 x 30% = 75,000

Q: TPW, a calendar year taxpayer, sold land with a $540,000 tax basis for $775,000 in February. The…

A: Gain on disposal of land as per book = Total amounts received for land - Adjusted tax basis Gain on…

Q: During 2020, Sienar Systems, Inc purchased Correalian Drives, Inc. (one of its suppliers) using the…

A: The question carries only goodwill amount, impairment of goodwill is needed as well. If we assume…

Q: okwa't Baboy Company prepared the following reconciliation of income per books with income per tax…

A: Formula: Total provision for income tax = Taxable income x Tax rate

Q: Tokwa't Baboy Company prepared the following reconiliation of income per books with income per tax…

A: Solution: Total provision for Income tax = Book income before taxes * Tax rate

Q: On January 1, 2019, KRIS KRINGLE Company purchased a ₱600,000 machine, with a five-year useful life…

A: Correct option is C. 36,000   Deferred tax liability as a result of change is P36,000

Q: What amount will be disclosed on the company's notes to financial statements?

A: The determination of amount to be disclosed on the company's notes to financial statements is shown…

Q: On Jan. 1, 2021, Yumi Co. settled a P 1,000,000 loan payable with an unamortized discount of P…

A: Solution: carrying value of loan = Loan amount - Unamortized discount = P1,000,000 - P20,000 =…

Q: Hunter Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Deferred tax liability is calculated on taxable temporary difference. Taxable temporary difference…

Q: On January 30, 2021, XYZ Corporation, a non-VAT registered company, purchased from ABC Corporation,…

A: SOLUTION-   EXPLANATION-   VAT RATE = 12%  SALES (A) 280000 OUTPUT VAT  (B)= (280000 / 1.12 )…

Q: Cullumber Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Income tax expense = Pretax financial income x Income tax rate

Q: On September 1, 2019, NATSU DRAGNEEL Company paid P2, 000, 000 for the purchase price of the…

A: It is a traditional method of Accounting which states that "Fixed Asset is assumed to be service /…

Q: Amway Corporation acquires a used desk on December 26, 2019, and places the desk in service on…

A: IRC deduction is better than depreciation.

Q: PRANCER Company, at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Total tax = Taxable amount x income tax rate = 250000 x 30% = 75,000

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Deferred tax assets (P24500 * 32%) = P7,840

Q: Sweet and Sour Company had pretax accounting income of P2,400,000 during 2020. Sweet and Sour…

A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: Ven Company is a retailer. In 2019, its before-tax net income for financial reporting purposes was…

A: Taxable Income: The amount of adjusted gross income that is liable to be taxed is known as taxable…