On Jan. 1, 2020, Heat Company reported a deferred tax liability of Php1,000,000 and a deferred tax asset of Php400,000. On Dec. 31, 2020, the entity reported a deferred tax liability of Php1,500,000 and a deferred tax asset of zero.

On Jan. 1, 2020, Heat Company reported a deferred tax liability of Php1,000,000 and a deferred tax asset of Php400,000. On Dec. 31, 2020, the entity reported a deferred tax liability of Php1,500,000 and a deferred tax asset of zero.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 11RE: Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred...

See similar textbooks

Related questions

Q: uces factory upgraded speakers specifically and speaker cabinets are outsourced with a ussemble the…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: Joshua Company has a define contribution plan that covers its existing employees. The terms of the…

A: The company also contributes to the defined benefit plan and these costs are recorded as benefit…

Q: ded the following information at the Atla beginning of the current year: 12% convertible bonds…

A: Given that, Net income for the year = P9,500,000 Tax rate = 30% Ordinary share outstanding at…

Q: January 1, 2021, ABC enters into a contract to construct a building for a customer. ABC identifies…

A: The revenue and gross profit for contract can be recognized on the basis of percentage of the work…

Q: Rocky Mountain Corporation makes two types of hiking boots—Xactive and Pathbreaker. Data concerning…

A: The question is related to Activity Based Costing and overheads. The pre-determined overhead rate…

Q: the taxpayer withheld 5% creditable withholding tax on rental payments to various VAT-registered…

A: Rent expense: Rent expense is an expense account that keeps an update of the cost of renting a…

Q: On December 31, 2021, Sleepy Corporation purchased for P40,000,000 cash all of the outstanding…

A: Goodwill: Goodwill is an intangible asset that is associated with the purchase of one company by…

Q: Using FIFO, compute for the total cost transferred to finished goods if the losses were discovered…

A: Process Costing: The equivalent units would be computed under the FIFO method for the Assembly…

Q: will be paid by his insurance company if a fire causes $710,000 in losses? O $568, 000 O $735, 000 D…

A: Insurance is contract entered between two parties ie. The company assuring in the contract of…

Q: Selected financial data from the September 30 year-end statements of Green Company are given below:…

A: Return on Average Total Assets: Return on assets (ROA) may be computed using a variety of methods;…

Q: At the shares of 10% P100 par value. operations and was authorized to issue 100,000 ord shares of…

A: Shares subscribed are the applications received for the purchase of the shares that are about to be…

Q: you think switching to an IFRS formatted balance sheet with the accounts rearranged will affect…

A: Meaning if IFRS: It is a set of accounting standards developed by the International Accounting…

Q: A. Record the infomation on a perpetual inventory record using each of the following methods: 1.…

Q: Thomas Company is issuing 4 000 ordinary shares, payable by instalments. Investors must pay $10 per…

A: option c Debit cash, Credit Ordinary Share Capital

Q: Jaybu Company acquired the following portfolio of equity instruments held for trading during 2022…

A: If equity instruments are held for trading then on each reporting date, investments are reported at…

Q: 3. What is the total spending variance? a. P4,000 unfavorable b. P3,000 unfavorable c. P4,000…

A: Spending Variance: A spending variance is the difference between the actual amount of a particular…

Q: Equipment that cost $412000 and on which $191000 of accumulated depreciation has been recorded was…

A: Journal entries are used to record a business transaction in a company's accounting records. A…

Q: are formed for the performance of special duties in the company.

A: In a company, committees are formed to maximize the efficiency and efficiency of the board of…

Q: Which depreciation method is most frequently used in businesses today? O Straight-line O…

A: Introduction: Depreciation is a reduction in the price of a tangible item that affects the asset's…

Q: Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an order with a French…

A: The foreign currency option indicates the purchase transaction made by the buyer in the foreign…

Q: 2. Jerson, married, 15 dependents, had the following income within and outside the Philippines:…

A: The Philippines taxes its resident citizens on their income from worldwide whereas the non- resident…

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: question 7 In a period of rising prices, the inventory method which tends to give the highest…

A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…

Q: How much is the consolidated total equity? *

Q: 16. During Year One, Hancock Corporation buys 2,000 shares of Waltz Inc. for P34 per share. Hancock…

A: Investment shall be valued at cost or market price whichever is lower.

Q: 7. Aaron Cousins is a self-employed VAT consultant. Aaron's business, Bruins VAT Consultancy…

A: National insurance contribution: It is mandatory tax that is imposed on the employed and self…

Q: 21. if the direct method of allocation is used, how much of the equipment maintenance costs would be…

A: The overhead rate is calculated with the help of following formula Overhead Rate = Manufacturing…

Q: 1. A supervisory employee has the following benefits: 13 month pay and other benefits De minimis…

A: The additional benefits offered to employees apart from the pay are fringe benefits.

Q: in Sydney. Although the length of his stay is not certain, he leases a residence in Brisbane for 12…

A: According to ATO guidelines, if an assessee has a temporary visa and neither he nor his spouse is an…

Q: Requirement: 1.Provide the reconciling entries in the books of home office. 2.Provide the…

A: NOSOME Co. operates a branch in Quezon City. At close of business on December 31, 20x9, Quezon…

Q: .A manufacturing company properly classifies and accounts for one product as a by-product rather…

A: Answer - Option A is incorrect because Any by-product may be developed/further processed into a…

Q: Gallerani Corporation has received a request for a special order of 5,500 units of product A90 for…

A: Lets understand the basics. When there is special order situation arise, relevant cost of fulfilling…

Q: amount of cash is accurately recorded on the financial statements. All of the following are…

A: an audit, independent examination of the financial statement of an entity. there are mainly three…

Q: The Boone Manufacturing had worked on two jobs, Job 101 and Job 102 last year. estimated…

A: The variance is the difference between the actual data and standard output of the production.

Q: Selected transactions for Ivanhoe Corporation during September 2018, its first month in business,…

A: Ledger accounts are prepared after journal entries. The journal entries are posted into Ledger…

Q: 3. Partnership Income Distribution: For partnerships G, If partner C’s total share of the…

A: Partnership allowance introduced for each partner will receive a separate payment,rather than one of…

Q: Question. A calendar-year taxpayer spends $10,000 in December on a file server and peripherals. The…

A: Straight-line depreciation is the depreciation method for recognizing the carrying amount of a fixed…

Q: What is the overhead cost per product, under traditional costing? Predetermined Overhead Rate =…

A: Tri-Bikes Traditional Costing: Predetermined overhead = Estimated total overhead / Estimated total…

Q: USING THE FOLLOWING CATEGORIES, DISCUSS THE DIFFERENCES THAT EXIST BETWEEN ACCOUNTING FOR THESE…

A: The process of defining, assessing, and reporting transactions to regulatory authorities, tax…

Q: X corporation, a corporation with P120,000,000 in total assets, reported the following for the year…

A: Given that, Total gross income = P500,000 Total taxable income = P300,000 Unrelated taxable income…

Q: Jean died in a common-law state in 2022 and was survived by her husband, Loren, and three adult…

A: A federal tax on the property of a person who dies is known as the Federal estate tax. The gross…

Q: QUESTION 25 How long must a capital asset be held to qualify for long term treatment? O A. Six…

A: As per IRS An capital asset is qualified for short term or long-term treatment on basis of time…

Q: question 5 A record of transactions for the month of January was as follows:…

A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method.

Q: Carol, a self-employed CPA, purchases hockey tickets online for $180 and takes a client to the game.…

A: Given: - Particulars Amount Cost of hockey ticket $180 Bill for Dinner $140 Total expense…

Q: INDICATE THE ORDER IN WHICH THE GIVEN STEPS ARE EXECUTED. BRIEFLY EXPLAIN

A: BPEL is a shortcut for expressing Web service-based business process behaviour. There are two…

Q: Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2022,…

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

Q: BLACK Company reported the following machineries on December 31, 2021: Accumulated depreciation P…

A: As per International Accounting standard 29, In a situation of hyperinflation currency in the…

Q: D. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per…

A: The dividend yield ratio is calculated as dividend per share divided by market value per share.

Q: (a) Calculate the unit cost for the assembly department for the month of April. (b) Calculate the…

A: Equivalent units means number of units that is taken as completed for the calculation of cost per…

Q: Personally Established Retirement Accounts These days, almost anyone can open personal,…

A: Answer:- Madeline is going to open SEP-IRA plan. Note:- A Simplified Employee Pension (SEP) plan…

Concept explainers

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.

Question

*see attached problem

REQUIRED:

What is the net deferred tax expense for the current year?

On Jan. 1, 2020, Heat Company reported a deferred tax liability of Php1,000,000
and a deferred tax asset of Php400,000. On Dec. 31, 2020, the entity reported
a deferred tax liability of Php1,500,000 and a deferred tax asset of zero.

Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the amount of financial depreciation, resulting in a book value of the depreciable assets of 24,500 for financial reporting purposes and of 20,000 for tax purposes at the end of 2019. In addition, Shadrach recognized a 3,500 estimated liability for legal expenses in the financial statements during 2019; it expects to pay this liability (and deduct it for tax purposes) in 2023. The current tax rate is 30%, no change in the tax rate has been enacted, and the company expects to be profitable in future years. What is the amount of the net deferred tax liability at the end of 2019? a. 300 b. 450 c. 1,050 d. 1,350
Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss of $15,000. What is the corporation's tax liability for 2019? $7,500 $5,250 $10,500 $13,650 None of the above
Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred tax asset, and 10,500 noncurrent deferred tax liability. Show how Barth James would report these deferred tax assets and liabilities on its balance sheet.
Tayla Corporation generated $400,000 of taxable income in the 2019. What is Tayla's corporate tax liability? $71,400 $84,000 $115,600 $0 None of the above
At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial reporting purposes, the asset has a 4-year life with no residual value and is depreciated by the straight-line method beginning in 2019. For tax purposes, the asset is depreciated under MACRS using a 5-year recovery period. Prior to 2019, Conley had no deferred tax liability or asset. The difference between depreciation for financial reporting purposes and income tax purposes is the only temporary difference between pretax financial income and taxable income. The current income tax rate is 30%, and no change in the tax rate has been enacted for future years. In 2019 and 2020, taxable income will be higher or lower than financial income by what amount?
Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and taxable income for 2020. The prior period adjustment was the result of an error in calculating bad debt expense for 2019. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. When the company applies intraperiod income tax allocation, the prior period adjustment will be shown on the: a. income statement at 12,000 b. income statement at 8,400 (net of 3,600 income taxes) c. retained earnings statement at 12,000 d. retained earnings statement at 8,400 (net of 3,600 income taxes)