Oriole Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $3165000 Estimated litigation expense 4165000 Extra depreciation for taxes (6162000) Taxable income $   1168000 The estimated litigation expense of $4165000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2054000 in each of the next 3 years. The income tax rate is 20% for all years. The deferred tax asset to be recognized is

Q: Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of…

A: a.Record income tax expense, deferred income taxes, and income taxes payable for 2020.

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: Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between…

A: Income Tax expense for the period is the sum of current income tax expense and deferred income tax…

Q: Ferrero Rocher Inc.’s only temporary difference at the beginning and end of 2020 is caused by a…

A: In the context of the given question, we are required to compute the deferred tax liability on…

Q: Prepare slater’s income tax journal entry at the end of 2019 and show how the deferred taxes would…

A: When Book profits are higher than Taxable profits then the difference tax amount shall be treated as…

Q: In its 2021 income statement, Crane Corp. reported depreciation of $3600000 and interest revenue on…

A: Deferred tax liability is the amount of liability that arises on account of differences in items as…

Q: pretax accounting income

A: Pretax accounting income = Taxable income + Accumulated depreciation for tax purpose - Accumulated…

Q: At the beginning of 2021, Cullumber Co. purchased an asset for $1850000 with an estimated useful…

A: Deferred Tax Liability: If Financial Taxable Income > Taxable Income Deferred Tax Asset: If…

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: For the year 2020, Tonkatsu Company reported income tax expense of P110,000. Income tax payable at…

A: Calculation of amount of income tax paid during the year... Income tax payable for 2019::P90,000..…

Q: 27. At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between…

A: Accounting income = P 4,500,000 Depreciation for tax purposes = P 9,000,000 Litigation expenses = P…

Q: (b) Assuming that it is more likely than not that $13,600 of the deferred tax asset will not be…

A: Deferred Tax Asset is an item which is shown in the balance sheet that reduces the company future…

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: On January 1, 2021, Sheridan, Inc. purchased a machine for $2180000 which will be depreciated…

A: Solution Concept If in case due to temporary difference The income for tax reporting is less than…

Q: Prepare Wilcox’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of…

A: ANSWER : Tax payable = 2950 * 30% = 885 Tax expense = 3000 * 30% = 900 1) Journal entry: Dr…

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

A: There can be difference in accounting income and taxable income of business due to different…

Q: The Garlic Pepper Steak Company had taxable income of P1,200,000 during 2020. Garlic Pepper Steak…

A:

Q: Nash Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,690,000…

A: 1) Present tax rate 40%  = 1476000 / 3690000           Deffered tax liability =  ($3,690,000 x…

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: 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: 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: Grouper Corp. has a deferred tax asset account with a balance of $71,600 at the end of 2019 due to a…

A: Solution:-a The following journal entry required for record income tax payable, income tax expense…

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

A: Taxable income = $1320000 Income tax rate = 20%

Q: furnit r equi

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

Q: Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between…

A: Estimated litigation expense deductible in 2016 is a temporary difference. Hence, deferred tax…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $100 million…

A: When there is difference in income as per accounting records and as per tax laws, then it give rise…

Q: Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between…

A: Gross profit from Instalment sales of $800,000 will be realized in next year is a temporary…

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

A:

Q: Mathis co. at the end of 2016, its first year of operations, prepared reconciliation between pretax…

A: Income Tax: - Income Tax is the direct tax charged by the government on the income earned by the…

Q: Cullen Construction Company, which began operations in 2020, changed from the completed-contract to…

A: (a)Calculate amount of net income that would be reported in 2021:Net income = Income before income…

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: The following information is taken from Igado Company’s 2020 financial records: Pretax accounting…

A: Deferred tax asset = Accrued warranty in excess of actual warranty expenditures X Tax rate for 2021)…

Q: Hopkins Co. at the end of 2010, its first year of operations, prepared a reconoliation between…

A: In the above question  Pre- tax financail income= $750,000 Estimate litigation expense = 1,000,000…

Q: At December 31, 2019, Sunland Company had a net deferred tax liability of $361,200. An explanation…

A: Deferred tax assets are the assets which would lead to reduction in tax liability in future years.…

Q: Mathis co. at the end of 2016, its first year of operations, prepared reconciliation between pretax…

A: The deferred tax represents the tax owed but not yet paid because there is a difference in the…

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

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

Q: Vaughn Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,300,000…

A: Deferred Tax Liability:-DTL is a tax that becomes due but not yet paid. The deferred come when there…

Q: At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between…

A: Tax is the liability paid to the government calculated on the income earned by the company.

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

A: taxable income of P700,000 in 2020

Q: For the year 2020, Tonkatsu Company reported income tax expense of P110,000. Income tax payable at…

A: Income tax liability for 2020 = income tax expense - ending deferred tax liability + beginning…

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.