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 $22,600

Q: ABC's pre-tax financial income is P1,800,000. Current income tax rate is 30%. In ABC Company's books…

A: Taxable income = Pre-tax financial income + Fines paid for late payment of taxes + Impairment of…

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

A:

Q: Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts…

A: Solution Given Pre tax income 100,000 Tax rate 30%    Depreciation in the financial…

Q: ABC's pre-tax financial income is P1,800,000. Current income tax rate is 30%. In ABC Company's books…

A: Solution: ABC Computation of Taxable income Particulars Amount Pretax financial Income…

Q: Bain co. had the following tax information. In 2018 Bain co. suffered a net operating loss of 48,000…

A: Loss carrybacks are similar to loss carry forward, except that companies apply their net operating…

Q: Kingbird Company reports pretax financial income of $73,500 for 2020. The following items cause…

A: Taxable income of the company is adjusted financial income on which company has to pay taxes.

Q: Gordon Company was started on January 1, 2010 and has two temporary differences between its income…

A: Journal entry refers to the first step in the accounting process, which signifies recording of…

Q: Kingbird Corporation had the following tax information. Year   Taxable Income   Tax Rate   Taxes…

A: Statement for computation of the effect of the loss carryback Net Operating Loss Carryback…

Q: Pampie Company reported in the income statement for the current year pretax income of Php400,000.…

A: Tax expense is the amount of tax that the entity has paid on its taxable income.

Q: During its first year of operations, Nile.com reported a net operating loss of $15 million for…

A:

Q: ABC’s pre-tax financial income is P1,800,000. Current income tax rate is 30%. In ABC Company’s books…

A: Taxable income = Pre-tax financial income + Fines paid for late payment of taxes + Impairment of…

Q: Wynn Farms reported a net operating loss of $280,000 for financial reporting and tax purposes in…

A: Solution 1: Net Operating loss carryback Amount Rate of Tax Tax Recorded as Carried back - 2017…

Q: The reported pretax financial income of Luciano Company is P1,800,000 and current income tax rate is…

A: Financial Income 1800000

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Deferred tax liability means liability calculated by finding difference between the comapany taxable…

Q: At the end of the year, the deferred tax asset account had a balance of $16 million attributable to…

A: Deferred Tax: Deferred tax is an amount i.e. computed on the basis of tax liability on the income as…

Q: T Company reports pretax financial income of P700,000 for 2020. The following caused taxable income…

A: There is a difference between taxable income and accounting income . Accounting income means income…

Q: Thornton, Inc., had taxable income of $129632 for the year. The company's marginal tax rate was 34…

A: A company’s tax due is calculated on the basis of the average tax rate and not the marginal tax…

Q: Bonita Company reports pretax financial income of $76,500 for 2020. The following items cause…

A: Taxable income: It is the income calculated as per the tax laws and on which the applicable tax…

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: Wynn Farms reported a net operating loss of $285,000 for financial reporting and tax purposes in…

A: 1.  Formulas first sub part:

Q: XYZ’s financial income is P1,800,000 before provision of income tax. The following differences have…

A: Taxable income = financial income before tax  + Excess of warranty expense  + Premiums paid on life…

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: Splish Company reports pretax financial income of $65,800 for 2020. The following items cause…

A: Taxable income for a corporation, we have to begin with the financial income as determined under…

Q: Wynn Farms reported a net operating loss of $195,000 for financial reporting and tax purposes in…

A: Solution 1: Net Operating loss carryback Amount Rate of Tax Tax Recorded as Carried back - 2017…

Q: Stephens Company has a deductible temporary difference of P2,000,000 at the end of its first year of…

A: Income tax expense is the tax expense incurred by an entity during a period. It is reported in the…

Q: For current year, S Corporation had a net short-term loss of $20,000. Its operating income excluding…

A: Capital Loss - It is the loss amount when investment value is higher than the current market value…

Q: At the end of the year, the deferred tax asset account had a balance of $12 million attributable to…

A:

Q: At the end of the year, the deferred tax asset account had a balance of $4 million attributable to a…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: Randolph Company reported pre-tax net income from continuing operations of $800,000 and taxable…

A: Calculations of Current Tax expense and Deferred Tax Expense   Current Tax expense = Taxable income…

Q: At December 31, 2020, Novak Company had a net deferred tax liability of $445,000. An explanation of…

A: Temporary Differences      (Asset) Liability Classification Depreciation    188000 Non Current…

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: ABC’s pre-tax financial income is P1,800,000. Current income tax rate is 30%. In ABC Company’s books…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Shear Co.'s Year 1 financial statements included profit from an installment sale of $2,600 that was…

A: Answer -  “Deferred Tax Expense” is created due to the difference in the timing of book profit and…

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: Baybrook Company had net income of $22,500. The company had $4,000 in penalties, $5,600 in…

A: Taxable income refers to the net income which is earned by an entity in a given period of time and…

Q: Wynn Farms reported a net operating loss of $160,000 for financial reporting and tax purposes in…

A: The question pertains to income tax benefit computation for net operating loss

Q: In Year 1of its operations, Reliable Company has revenues of $600,000 and expenses of $400,000. Of…

A: Revenue.                                         $600000 less : expenses  ($400000 - $70000…

Q: Frey Corporation's income statement for the year ended December 31, 2002, shows pretax income of…

A: Timing difference: Rent income =  ₱120,000 - ₱70,000 = ₱50,000 Depreciation expense = 280000 -…

Q: GUCCI Corp. in its first year of operations has the following differences between the carrying value…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Wynn Farms reported a net operating loss of $225,000 for financial reporting and tax purposes in…

A: Deferred tax asset or deferred tax liability generally arises when there is a difference between…

Q: At December 31, 2020, Novak Company had a net deferred tax liability of $445,000. An explanation of…

A: Note: Net deferred tax liability of $445,000 is shown under the Non-Current liabilities.

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: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Deferred tax liability: The deferred tax liability is the excess, over received, or received in…

Q: At December 31, 2020, Cascade Company had a net deferred tax liability of $450,000. An explanation…

A: Cascade Company should present deferred taxes on December 31, 2020, statement of financial position…

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: s pretax financial income of $68,400 for 2020. The following items cause taxable income to be…

A: The answers have been mentioned below.

Q: GUCCI Corp. in its first year of operations has the following differences between the carrying value…

A: The tax differences that may arise due to the effect of the time difference are known as deferred…

Q: If the beginning balance in Swan, Inc.’s OAA is $6,700 and the following transactions occur, what is…

A: Ending OAA balance = Beginning balance + Tax exempt interest income + life insurance proceeds - Life…

Q: osh Company reports pretax financial income of P700,000 for 2020. The following caused taxable…

A: Solution: Taxable income for 2020 = Pretax income - Depreciation on the tax return is greater than…

Q: What is Dick Tracy Corporation’s deductible expense? a. P45,000 b. P75,000 c. P95,000 d. P60,000

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

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.