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- Livia Company’s pretax income was $72,000. To compute taxable income, the following information is provided: Excess of estimated bad debts over write-offs $26,000 Penalty for late filing of income taxes 21,000 Excess of tax depreciation over accounting depreciation 36,000 Tax rate 20% What is the current portion of income tax? $12,400 $6200 $16,600 $22,600A company has accounts receivable of $300 000 and an associated doubtful debts allowance of $60 000. The revenue associated with the accounts receivable of $300 000 has already been included in taxable profit. The doubtful debts will be deductible when the amount is actually written off as bad with a related deduction to accounts receivable. REQUIRED a) Assuming that the tax rate is 30 percent, what is the amount of the temporary difference? b) Does this give rise to a deferred tax asset or a deferred tax liability, and what is the amount of the deferred tax asset/liability Please donot provide solution in image format provide solution in step by step format and asapA loan payable has a carrying amount of P4,000. The repayment of the loan will have no tax consequences. How much is the tax base of the liability? The tax rate is 40%.
- What is the amount of Taxes Owed for the period if the tax rate is 30%, if Earnings Before Taxes ( a.k.a. EBT, or pre-tax earnings) is 250,000?In 2021. ABC Corp. borrowed money from the bank in the amount of Php 1 Million with an interest rate of 10%. ABC Corp. has interest income from bank deposits in the amount of Php 50,000.00 from which final tax was withheld. Assume ABC Corp's tax rate is 25% How much is the allowable interest expense?Baltimore inc reported pretax gaap income of $45,000 in 2020. The company determined it had deducted $5000 in nondeductible fines and added $2800 in tax exempt municipal interest revenue to Gaap income. Given a statutory tax rate of 25%, determine the taxable income, income tax payable, income tax expense, net income, and effective tax rate.
- Prey ltd accountant has estimated current tax of 50 000 based on the current profit. The income tax value of the non-current assets are 75 000 and the carrying amount of non-current assets as at 31 December 2020 is 90 000.Tax rate is 22%. Using the information given above,calculate the deferred tax for the year ended 31 December 2020Trade receivables have a carrying amount of P4,000. The related revenue has already been included in taxable profit (tax loss). How much is the tax base of the asset? The tax rate is 40%.Maxwell's annual financial statements show operating profit before interest and tax of $415,386 thousand, net income of $254,418 thousand, provision for income taxes of $73,016 thousand and net nonoperating expense before tax of $87,593 thousand.Assume Maxwell's statutory tax rate for the year is 37%. What is Maxwell's tax shield?:
- At December 31, DePaul Corporation had a $16 million balance in its deferred tax asset account and a $68 million balance in its deferred tax liability account. The balances were due to the following cumulative temporary differences: 1. Estimated warranty expense, $15 million: expense recorded in the year of the sale; tax-deductible when paid (one-year warranty). 2. Depreciation expense, $120 million: straight-line in the income statement; MACRS on the tax return. 3. Income from installment sales of properties, $50 million: income recorded in the year of the sale; taxable when received equally over the next five years. 4. Rent revenue collected in advance, $25 million; taxable in the year collected; recorded as income when earned the following year. Required: Show how any deferred tax amounts should be classified and reported in the December 31 balance sheet. The tax rate is 40%.Buster Corporation reported $150,000 in revenues in its Year 1 financial statements, of which $50,000 will not be included in the tax return until Year 2. The enacted tax rate is 34% for Year 1 and 25% for Year 2. What amount should Roger report for deferred income tax liability in its balance sheet at December 31, Year 1?The Foyer Company had an enacted income tax rate of 25%. The company ended Year 1 with a deferred income tax liability of $30,000, a deferred income tax asset of $40,000, and a valuation allowance of $9,000. The enacted tax rate at the beginning of Year 2 was raised to 28%. The company ended Year 2 with a deferred income tax liability of $60,000, a deferred income tax asset of $30,000, and a valuation allowance of $14,000. On the company's Year 2 income statement, what is the amount of income tax expense (deferred) that is reported?
