Scott Corp. received cash of $20,000 that was included in revenues in its 2016 financial statements, of which $12,000 will not be taxable until 2017. Scott’s enacted tax rate is 30% for 2016, and 25% for 2017. What amount should Scott report in its 2016 balance sheet for deferred income tax liability? a. $2,000 b. $2,400 c. $3,000 d. $3,600

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

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A:

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A:

Q: Bellago  Ltd made an accounting profit before tax of $75,000 for the year ended 30 June 2020.The…

A: Solution: Calculation of the current tax liability for the year ended 30 June 2020: Bellago Ltd…

Q: BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes…

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A:

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A: Working Note: 1. At the end of the year 2016, The book value of the current liability is $6,000…

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A: Sales to be reported for December 31, 2018 = Balance of Accounts receivable as on December 31, 2018…

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A: Workings:

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A: The question is based on the concept of Taxation.

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A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: What is the net income after tax?

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

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A:

Q: The following information pertains to XYZ Inc Year Taxable Income(loss) tax rate taxes paid 2009…

A: XYZ Co. Can take refund of taxes on loss in 2014. So please check the next step for the solution.

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

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A: Profit before tax: The amount of a company's net earnings prior to adjustment of income taxes is…

Q: Scott Corp. received cash of P20,000 that was included in revenues in its 20x4 financial statements…

A: Deferred income tax liability for 2014 = revenues taxable in 20x5 x enacted tax rate for 20x5

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A: Requirement 1:   Compute the amount of tax payable.

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A:

Q: BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes…

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

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.