Sunland 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 $3330000 Estimated litigation expense 4330000 Extra depreciation for taxes (6324000) Taxable income $   1336000 The estimated litigation expense of $4330000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2108000 in each of the next 3 years. The income tax rate is 20% for all years. Income taxes payable is $598800 $398800 0 $267200

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

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

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

A: Solution Given Pretax financial income                 =$3550000 Estimated litigation expense…

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: Sunland Co. at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Here litigation expense is deferred tax asset and extra depreciation is deferred tax liability. The…

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

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

Q: Pole Co. at the end of 2019, its first year of operations, prepared a reconciliation between pretax…

A: The deferred tax asset is the over-payment or payment of taxes in advance. It is created when a…

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: 33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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

A: Taxable Income 700000

Q: pretax accounting income

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

Q: At the beginning of 2021, Crane Co. purchased an asset for $1200000 with an estimated useful life of…

A: The correct answer is  $978000$720000

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: 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: 33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation…

A: The Answer is Option D. 1,800,000 Estimated Litigation Expenses 6,000,000 Tax Rate 30%…

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: 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: PT ABC has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

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

A: Solution: Deferred tax is an item on the balance sheet of the entity, for excess payments, advance…

Q: Bossjini Co. reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included in…

A: Given: Pre tax financial income = P6,200,000 Other income which is not taxable = P200,000 Accounting…

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: 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: 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 difference between the book basis and tax basis of the assets and liabilities of Ramen…

A: A deferred tax asset & liability A deferred tax assets  are  the assets  on a company's balance…

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

A: Deferred tax asset can be defined as a balance sheet item which shows the tax expenses that are…

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: Nadal Inc. has two temporary differences at the end of 2019. The first difference stems from…

A: a.  Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes…

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: PT BCD has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a…

A: Cumulative temporary difference at the end of 2019 = Rp 1.000.000 Tax rate = 40%  Deferred tax asset…

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: 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…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.