O’Reilly Beverage Company reported net income of $650,000 for 2021. In addition, the company deferred a $60,000 pretax loss on derivatives and had pretax net unrealized gains on debt securities of $40,000. Prepare a separate statement of comprehensive income for 2021. The company’s income tax rate is 25%.

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: For fiscal year 2021, ABC Corporation, a retailer, has PL4 billion in gross sales, P560 million in…

A: Income tax due is the amount being paid by the taxpayer or the business owner over the net income…

Q: Fidelity, Inc., a financial company, reported income tax expense of $2,648 million for 2020,…

A: Cash payments for income taxes paid during 2020 = Beginning income taxes payable + current taxes -…

Q: Amazon LTD reported the following tax attributes for the taxation year ending December 31, 2020.…

A: The goal of refundable dividend tax on hand accounts ("RDTOH") is to account for tax paid to avoid…

Q: Western Digital reported $950 million in income before income taxes for 2021, its first year of…

A: Deferred tax liability is the amount of tax to be paid in the future on the temporary taxable…

Q: TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net…

A: The effective tax is hypothetical tax rate  = 21%  Which is to be adjusted for permanent differences

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: This is under Singapore Tax Laws. For the year ended 30 September 2020, Maximus Pte Ltd’s trading…

A: Note :  1) Interest of $3600 matured as at Dec 31, 2020 will not be included in statutory income for…

Q: Makapuno Bank has earned interest income of P200,000 from an instrument with remaining maturity of 5…

A: Answer: In any case of interest income of bank with remaining maturity period of 5 years or less…

Q: Oxford Corporation began operations in 2020 and reported pretax financial income of $225,000 for the…

A:

Q: Bird Company reported $350,000 in book income before income tax during 2021, its first year of…

A: Formula: Deferred tax liability= Tax depreciation exceeded its book depreciation amount x tax rate…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: Ray Company had the following liabilities on December 31, 2021: ·       Trade accounts payable, net…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Q: On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes…

A: Definition:   Liability: Liability is an agreement made by a company to pay a certain amount for the…

Q: Headland Corporation began operations in 2020 and reported pretax financial income of $226,000 for…

A: Deferred tax liability arises when Book profit is higher than the taxable profit. In the given…

Q: The Dakota Corporation had a 2021 taxable income of S20,000,000 from operations after all operating…

A: Formula: Income tax liability = Taxable income x Tax rate

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A: EPS termed as Earnings per share which is a figure that states the profit per share of stock…

Q: STARS Company reported net income for the current year 2021 before taxes is P4,288,000. The…

A: Tax payable: The amount of tax required to be paid by the taxpayer every year is called tax payable.…

Q: KreamyKeyk Company, in its first year of operations, has the following difference between the…

A: 1. Deferred tax liability to be reported in KreamyKeyk's statement of financial position at December…

Q: The entry to record the income tax expense would include a

A: Answer:   Credit to income tax payable.

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: EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December…

A: Comprehensive income statement: It is a statement prepared to determine the total revenue, expenses,…

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: Wynn Farms reported a net operating loss of $180,000 for financial reporting and tax purposes in…

A: 1. Net Operating loss carryback Amount Rate of Tax Tax Recorded as Carried back - 2017 $0 30%…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: Vasquez Corp.'s 2017 income statement showed pretax accounting income of $2,040,000. To compute the…

A: Formula: Taxable amount = Adjusted income x Tax rate

Q: On January 1, 2020, Aguilar Corporation purchased bonds with a face value of P4,000,000 for…

A: Where investment are classified as FVTPL, then initially the investments are recorded Fair Value .…

Q: For calendar 2020, Marvel Corporation, Inc., reported depreciation expense of $900,000 on its income…

A: Deferred tax liability is a tax obligation that accumulated in one year but is due to be adjusted in…

Q: For the calendar year 2021, ABC Corporation a retailer, has gross sales of PI.4 billion, cost of…

A: The amount of income tax due is the difference between the net income received and the amount paid…

Q: During 2021, Palm Corporation reported pretax book income of $675,000. Tax depreciation exceeded…

A: Deferred Tax Provisions It is important for the business to calculate the income tax expenses 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: Uno Company reported income before tax for the first six months ended June 30, 2021 at P5,000,000.…

A: Interim financial statements are those financial statements which are prepared in between two…

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

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A: The book equivalent  Taxable  income   considers only  permanent  capital

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A: Net Operating Loss Net operating loss denotes a situation in which operating expenses exceed net…

Q: A corporation in 2017 expects a gross income of $500,000, total operating expenses of $400,000, and…

A: The taxable income is computed after deducting all direct and indirect expenses from revenues. In…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability…

A: Deferred Tax for the Year Tax depreciation greater than depreciation expense Deferred tax liability…

Q: For fiscal year 2021, ABC Corporation, a retailer, has P1.4 billion in gross sales, P560 million in…

A: Income tax due is the amount being paid by the taxpayer or the business owner over the net income…

Q: On October 1, 2021, Neon Company purchased a P2,000,000 face value 10% debt instrument paying a…

A: A profit and loss financial statement that illustrates a company's revenue and spending over a…

Q: Ray Company had the following liabilities on December 31, 2021: ·       Trade accounts payable, net…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :    Interest…

Q: EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: Indigo Corporation began operations in 2020 and reported pretax financial income of $234,000 for the…

A: Deferred tax liability arises when the book depreciation is more than tax depreciation in the…

Q: ori Vega and Company had the following liabilities as of December 31, 2021: Accounts Payable of…

A: There are certain items which seems to be as nature of current liabilities but they are not to be…

Q: In 2021, A & K, Inc. expects operating income (earnings before interest and taxes) of $18,000,000.…

A: Dividends are paid to the shareholders after deducting tax from the taxable income. Therefore, it is…

Q: Ray Company had the following liabilities on December 31, 2021: ·       Trade accounts payable, net…

A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: On its December 31, 2021 statement of financial position, Emig Corp. reported bonds payable of…

A: Lets understand the basics. For determining extinguishment of debt, we need to use below formula.…

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.