T Company reports pretax financial income of P700,000 for 2020. The following caused taxable income to be different than accounting income: -Depreciation on the tax return is greater than depreciation on the income statement by P160,000. -Rent collected on the tax return is greater than rent earned on the income statement by P220,000. -Fines for pollution appears as an expense of P110,000 on the income statement. T's tax rate is 30% for all years and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. What is the amount of income tax liability for 2020?

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A: What is meant by Journal entries? It is the first step to record the financial transactions in the…

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

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A: Income tax Payable: It refers to the amount which is required to be paid by an entity on the taxable…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

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Q: For the year ended December 31, 2021, Irene Company reported pretax accounting income of P6,000,000.…

A: Total income tax expense for the current year = Pretax accounting income x tax rate

Q: pretax accounting income

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

Q: Integrity Company computed a pre-tax financial income of P2,200,000 for its first year of operations…

A: According to the given question, we are required to compute the total income tax expense in 2021.…

Q: Bonita Company reports pretax financial income of $76,500 for 2020. The following items cause…

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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: In 2020, Amirante Corporation had pretax financial income of $168,000 and taxable ­income of…

A:

Q: Ajax Corporation had taxable income of $114,560 during 2021. Ajax used MACRS for tax purposes…

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Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

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Q: Cris Company reported the following results for the year ended December 31, 2020, its first year of…

A: If Taxable income  is greater than  income  as per books of accounts then it will result  in…

Q: Splish Company reports pretax financial income of $65,800 for 2020. The following items cause…

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Q: Fore Farms reported a pretax operating loss of $220 million for financial reporting purposes in…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Determine the taxable income and income tax payable for the year to 30 June 2020. (2.5 Marks)…

A:

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $125 million…

A: The answer is as fallows

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A: Income subject to tax =  pre-tax financial income -  Nontaxable revenue + Nondeductible expense =…

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The…

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Q: Bramble Corp. follows IFRS and began operations in 2020 and reported accounting income of $274,000…

A: Deferred tax Deferred tax which are described as the tax difference between the current tax and any…

Q: At 30 June 2019, ABC Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Deferred Tax Liability: The amount of tax that a company has paid less than that of the actual tax.…

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A: Lets understand the basics. When there is temporary taxable differencce arise between the taxable…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Deferred tax assets = Net operating loss x enacted tax rate = $440,000 x 25% = $110,000

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The…

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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: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Following are the answers to given questions

Q: Fore Farms reported a pretax operating loss of $260 million for financial reporting purposes in…

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

Q: s pretax financial income of $68,400 for 2020. The following items cause taxable income to be…

A: The answers have been mentioned below.

Q: Teal Company reports pretax financial income of $72,600 for 2020. The following items cause taxable…

A: Taxable income = Pretax financial income + Excess rent collected + Fine paid for pollution

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Q: Lyons company deducts insurance expense of P84,000 for tax purposes in 2015, but the expense is not…

A:

Q: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely…

A: Given information is: At the end of 2020, Payne Industries had a deferred tax asset account with a…

Q: In 2020, Sunland Corporation had pretax financial income of $185,000 and taxable income of $117,000.…

A: Financial Income is immaterial. TaxableIncome                  $117,000 Effective Taxrate…

Q: osh Company reports pretax financial income of P700,000 for 2020. The following caused taxable…

A: Solution: Taxable income for 2020 = Pretax income - Depreciation on the tax return is greater than…

Q: A company had pretax financial income of $796,000 in 2021. During 2021, the following items cause…

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Q: Marigold Company reports pretax financial income of $72,000 for 2020. The following items cause…

A: Compute taxable income and income taxes payable for 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…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000…

A: Deferred tax can be a notional asset or liability to think about corporate pay tax assessment a…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Deferred tax can be a notional asset or liability to think about corporate pay tax assessment a…

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.