1 Shirmp Tempura Company reported an excess of warranty expense over warranty deductionsof P720,000 for the year ended December 31, 2019. This temporary difference will reverse inequal amounts over the years 2020 through 2022. The enacted tax rates are as follows:201930%202032%202134%202236%The reporting for this temporary difference at December 31, 2019 would be a*O deferred tax asset of P216,000.O deferred tax liability of P244,800.O deferred tax liability of P216,000.O deferred tax asset of P244,800.

Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 2020 2021 30% 32% 34% 36% 2022 The reporting for this temporary difference at December 31, 2019 would be a * O deferred tax asset of P216,000.

Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 2020 2021 30% 32% 34% 36% 2022 The reporting for this temporary difference at December 31, 2019 would be a * O deferred tax asset of P216,000.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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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)
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Multiple Temporary Differences Wilcox Company has prepared the following reconciliation of its pretax financial income with its taxable income for 2019: At the beginning of 2019, Wilcox had a deferred tax liability of 495. The current tax rate is 30%, and no change in the tax rate has been enacted for future years. At the end of 2019, Wilcox anticipates that actual warranty costs will exceed estimated warranty expense by 100 next year and that financial depreciation will exceed tax depreciation by 1,800 in future years. Wilcox has earned income in all past years and expects to earn income in the future. Required: 1. Prepare Wilcoxs income tax journal entry at the end of 2019. 2. Prepare the lower portion of Wilcoxs 2019 income statement. 3. Show how the income tax items are reported on Wilcoxs December 31, 2019, balance sheet.
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