Sweet and Sour Company had pretax accounting income of P2,400,000 during 2020. Sweet and Sour Company’s temporary difference for 2020 relates to a sale made in 2019 and recognized for accounting purposes at that time. However, Sweet and Sour Company uses the installment method of revenue recognition for tax purposes. During 2020, the company collected a receivable from the 2019 sale which resulted in P600,000 of income under the installment method.  What is Sweet and Sour Company’s taxable income for 2020?

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: Bramble Corp. had a Deferred Tax Asset account with a balance of $100,200 at the end of 2019 due to…

A: Journal entries refers to the process of systematically documenting or recording the financial…

Q: At the beginning of 2020, Wertz Construction Company changed from the completed-contract method to…

A: When there is change in the revenue recognition principle of a construction company from completion…

Q: Blossom Company deducts insurance expense of $171000 for tax purposes in 2021, but the expense is…

A: Question says that: Blossom company has deducted insurance expense of $171,000 for tax purpose of…

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: Jolens Company reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included…

A: Calculate taxable income.

Q: Teri Hatcher Inc., in its first year of operations, has the following differences between the book…

A: (a) Required journal entry:

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

A: Taxable Income 700000

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

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

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

A: Income taxes payable = Taxable income * Income tax rate

Q: Palmer Co. had a deferred tax liability balance due to a temporary difference at the beginning of…

A: Deferred tax is the income tax payable in the future due to timing differences. It can be a…

Q: Scarlet Company had pretax accounting income of P2,400,000 during 2020. Scarlet Company’s temporary…

A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: Apple Company, which began operations on January 1, 2020, has elected to use the cash basis…

A: The cash basis accounting records the revenue and expenses when they are incurred in cash. The…

Q: Callaway Corp. has a deferred tax asset account with a balance of $112,500 at the end of 2020 due to…

A:

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: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Total reversal amount = reverse in 2021 + reverse in 2022 + reverse in 2023 = $56200+61000 +66500 =…

Q: The following taxable income data is available for ACME Incorporated: Year Taxable Income Tax Rate…

A: Income statement- The Income Statement is one of a company’s heart fiscal statements that…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $65 million…

A: Introduction: Journal entries should not be used to record routine transactions such as customer…

Q: Berkshire Corp. sometimes sells property on an installment basis. In those cases, Berkshire reports…

A: Income tax refers to annual taxes imposed by federal government and most state governments on the…

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

A:

Q: okwa't Baboy Company prepared the following reconciliation of income per books with income per tax…

A: Formula: Total provision for income tax = Taxable income x Tax rate

Q: On January 1, 2021, Monster Company changed to the percentage of completion method of income…

A: Percentage of Completion Method:-It is required to report revenue and expenses on a period-by-period…

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

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

Q: Tokwa't Baboy Company prepared the following reconiliation of income per books with income per tax…

A: Solution: Total provision for Income tax = Book income before taxes * Tax rate

Q: As of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences…

A: Income tax payable = tax rate * taxable income  Taxable Income = pre tax income - TTD + DTD TTD=…

Q: Bestlook Company provided the following information for its first year of operati December 31, 2019…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

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: Callaway Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2017 due to…

A: (a) Date Account Title and Explanation Debit Credit   Dec, 31 2013 Income tax…

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: 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: Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: Sherrod, Inc., reported pretax accounting income of $70 million for 2021. The following information…

A: A deferred tax liability is a tax that is assessed or is due for the current period but has not yet…

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: for financial reporting purposes, and when installment payments are received for tax purposes. Rona…

A: Tax computation for 2020 P Pre tax accounting income (i)        20,00,000     Less: Gross…

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: 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: During 2021, a construction company that began operations in 2019 changed from the…

A: Introduction:- Under percentage of completion method is a way of identifying construction revenue…

Q: Howard Company, which began operations on January 1, 2020, has elected to use the cash basis…

A: The accrual basis accounting records the revenue and expenses as soon as they are actually earned or…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $90 million…

A: In order to prepare journal entry to record income taxes of Payne for 2021, two entry will be…

Q: Sherrod, Inc., reported pretax accounting income of $82 million for 2021. The following information…

A: SOLUTION 1- EVENT PARTICULARS AMOUNT HINT   PRE TAX ACCOUNTING INCOME (AS GIVEN) 82   B ADD…

Q: Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable…

A:

Q: At the end of 2019, its first year of operations, Beattie Company reported taxable income of $39,000…

A: Journal entries are prepared to record the financial and non-financial transactions of the business…

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

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

Q: Sweet and Sour Company had pretax accounting income of P2,400,000 during 2020. Sweet and Sour…

A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: On January 2, 2019, Grey Company received an P800,000, 8%, 2 year note from Black Corporation as…

A: Impairment loss is the excess of carrying amount over the recoverable amount of the notes…

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.