Oriole Corporation reported the following results for its first three years of operation: 2020 income (before income taxes)   $ 330000   2021 loss (before income taxes)   ( 3000000 ) 2022 income (before income taxes)   3300000   There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022. Assuming that Oriole elects to use the carryforward provision and not the carryback provision, what income (loss) is reported in 2021?

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A: Solution: Deferred tax asset = Excess accrued warranty * tax rate of 2021  = 24500*32%  = 7,840

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A: Solution: Taxable income = Pretax financial income - Tax exempt interest - Taxable temporary…

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A: Part 1:

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A: Introduction:- Deferred tax liability arises due to timing difference in the value of assets as per…

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A: a. Prepare journal entries to record income taxes for all 4 years as shown below:

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A: Income Tax expense and Deferred Tax Asset: The expense that is mandatorily is to be paid by an…

Q: The estimated taxable income for Love Corporation on January 1, 2021, was P80,000, P100,000,…

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Q: At the beginning of 2021; Cullumber, Inc. had a deferred tax asset of $26000 and a deferred tax…

A: Taxable income is also described as adjusted gross income which is derived by deducting deduction or…

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A: Solution: Taxable income = Pretax income - Tax exempt interest - Taxable temporary difference =…

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A: Taxable income= Pretax financial income +/- temporary differences +/- permanent differences.…

Q: ABC Corporation provides you with the following information for the 2020 tax year, which was the…

A: Tax is the charge which is charged on the taxable income of the taxpayer earned during the year. The…

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A: Note: It is assumed that the corporate tax rate for 2020 and 2021 is 20% and for 2022 is 30%.

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A: There are two types of differences can arise in the accounting. One is temporary difference and…

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Q: Blossom Corporation reported the following results for its first three years of operation: 2020…

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Q: J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $376,000 in 2021. The…

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A: Given information is: J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of…

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A: Solution: Taxable income for 2020 = Pretax financial income - Tax exempt interest - Taxable…

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Deferred tax assets (P24500 * 32%) = P7,840