Lax Company at the end of 2019, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income P900,000; Estimated litigation expense P1,200,000; Extra depreciation for taxes (P1,800,000); Taxable income P400,000. The estimated litigation expense of P1,200,000 will be deductible in 2020 when it is expected to be paid. Use of the depreciable asset will result in taxable amounts of P600,000 in each of the next three years. The income tax rate is 30% for all years. Income tax payable is A. P0 B. P120,000

Q: Lax Company at the end of 2019, its first year of operations, prepared a reconciliation between…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: res

A: Cost of Property plant and Equipment 4000000 Estimated useful life 8 Years Estimated Residual…

Q: XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

A: Pretax income: It is generally the income of the entity in which all the expenses, interest and…

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

A: Solution Given Pretax financial income                 =$3550000 Estimated litigation expense…

Q: The following information is available for Whispering Inc. for 2019: 1. Excess of tax depreciation…

A: Taxable income refers to the total amount of money or income earned by an individual or an entity in…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: Deferred tax laibility is the amount of tax a company owes to the…

Q: Pole Co. at the end of 2019, its first year of operations, prepared a reconciliation between pretax…

A: The deferred tax asset is the over-payment or payment of taxes in advance. It is created when a…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A:

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: The extra amount paid as taxes i.e. advance payment for next year or over payment of the amount due…

Q: The difference between the book basis and tax basis of the assets and liabilities of Ramen…

A: Taxable Income 700000

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: At the end of 2019, Vaughn Company has $181,600 of cumulative temporary differences that will result…

A: Year Amount Tax rate Amount 2020 $60,500 30% 18,150.00 2021 50,200 30% 15,060.00 2022…

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

A: Income taxes payable = Taxable income * Income tax rate

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

A: Particulars Amount Income tax payable ($2040000x20%) $408,000 Less: Change in deferred tax asset…

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

A: In common paralance the word "deferred"  means arranging for something to happen at…

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: How much should be the pretax financial income subject to income tax?

A: Income tax:- Income tax is the tax that has to be paid by an individual/company/firm on their…

Q: Loni Company paid $1,037,000 for tangible personalty in 2019 and elected to expense $1,020,000 of…

A: Taxable income refers to that part of the income which is used to determine the amount of tax an…

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: n 2020, Smith Traders Incorporated and reported a net operating loss of $100,000. In 2021, before…

A: When an entity is not able to earn revenue than their expenses it is the condition of net operating…

Q: (a) Prepare a table of future taxable and deductible amounts. (b) Prepare the journal entry to…

A:

Q: PT ABC has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a…

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

Q: ABC Company prepared the reconciliation between pretax financial income and taxable income at…

A: Income tax expense (benefit) for the year 2019 =  Pretax financial income x Income tax rate

Q: Compute taxable income for 2019. Taxable income   $enter Taxable income in dollars     (b)…

A: Deferred tax asset is the tax asset which the company has paid in advance to the government during…

Q: ole Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

A: Depreciation:- Depreciation is defined as decrease in the monetary value of an asset over time due…

Q: s of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences…

A: Step 1 Current tax to be reportable is equal to current tax + Deferred tax liability – Deferred tax…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: A deferred tax liability or asset represents the increase or decrease in taxes payable or refundable…

Q: furnit r equi

A: Introduction Depreciation expense can be defined as a non-cash expenditure which represents the…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $125 million…

A: The answer is as fallows

Q: The following information is available for Wenger Corporation for 2019 (its first year of…

A: aCompute taxable income for 2019.

Q: Pole Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

A:

Q: At the beginning of 2019, PT XYZ purchased an asset for Rp600.000 with an estimated useful life of 5…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Bestlook Company provided the following information for its first year of operati December 31, 2019…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: The difference between the book basis and tax basis of the assets and liabilities of Ramen…

A: A deferred tax asset & liability A deferred tax assets  are  the assets  on a company's balance…

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

A: Deferred tax asset can be defined as a balance sheet item which shows the tax expenses that are…

Q: Camden Inc. (a property and casualty insurance company) reported taxable income of $250,000 for 2019…

A: Camden Inc. reported Taxable income for 2019 = $250000 Taxable income for 2020 = $300000 Tax rate =…

Q: Nadal Inc. has two temporary differences at the end of 2019. The first difference stems from…

A: a.  Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes…

Q: he income tax rate is 30% for all years. Income tax payable is?

A: Income Tax is a form of indirect tax. It is the tax payable on the amount of income earned during a…

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

A: Income taxes payable = taxable income * tax rate

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: The deferred tax asset to be recognized is $128000 current. $640000 noncurrent. $0. $128000…

A: A deferred tax asset  It is an asset on a company's balance sheet which is  used to reduce its…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: In Straight Line Method of depreciation the depreciation is calculated by…

Q: PT BCD has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a…

A: Cumulative temporary difference at the end of 2019 = Rp 1.000.000 Tax rate = 40%  Deferred tax asset…

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: 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: In 2017, Rusk Corporation has a net operating loss of $10,000 that Rusk may only carry forward. In…

A: Carry forward loss: It can be defined as a technique of accounting that allows the taxpayer to carry…

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…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.