that are sold on the installment basis. payments are received for tax purposes. Rona Company started to manufacture in 2020 copy machines financial reporting purposes and P1,500,000 for tax purposes. for financial reporting purposes, and when installment Rona Company recognizes revenue when equipment is sold Koanancial reporting purposes, and when installment te 2020, the entity recognized gross profit of P6,000,000 for eancial reporting purposes and P1,500,000 for tax purposes. The amounts of gross profit expected to be recognized for tax purposes in 2021 and 2022 are P2,500,000 and P2,000,000, respectively. The entity guaranteed the copy machines for two years. Warranty costs are recognized on the accrual basis for financial reporting purposes and when paid for tax purposes. Warranty cost accrued in 2020 is P2,500,000 but only P500,000 of warranty cost is paid in 2020. It is expected that in 2021 and 2022, P1,000,000 and P1,000,000 respectively, of warranty cost will be paid. In addition during 2020, P500,000 interest, net of 20% final income tax, was received and earned. Insurance premium of P100,000 on life insurance policy that covered the life of entity's president was paid. The entity is the beneficiary for this policy. Pretax accounting income in 2020 was P2,000,000. Any 2020 operating loss will be carried forward to 2021. The tax rate is 30%.

Required:  a. Calculate the current and deferred tax of Bright Star Ltd for each year, 2018 and 2019 b. Prepare the required tax journal entries for each year.

the pretax financial income (or loss) figures for metlock company are as follows 2022- 77000; 2023-(49000); 2024-(44000); 2025-125000; 2026-95000. pretax financial income (or loss) and taxable (loss) were the same for all years involved. Assumed a 20% tax rate for all years. Prepare the journal entries for the years 2022 and 2026 to record income tax expense and the effects of the net operating loss carry forwards. all income and losses related to normal operations (in recording the benefits of a loss carry forward assume that no valuation account is deemed necessary Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $676 million in sales of this type. Scheduled collections for these sales are as follows:            2021 $ 83 million   2022   137 million   2023   129 million   2024   162 million   2025   165 million     $ 676 million      Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet?

Sherrod, Inc., reported pretax accounting income of $70 million for 2021. The following information relates to differences between pretax accounting income and taxable income: Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $4 million. The installment receivable account at year-end 2021 had a balance of $6 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023. Sherrod was assessed a penalty of $1 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $60 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but…

Foster Company reported pretax financial income of $350,000 for 2021. Foster uses an accelerated form of depreciation for tax purposes, and it exceeds book depreciation by $50,000. The tax rate for 2021 is 20%. Record the journal entry at the end of 2021, be sure to include calculations, as well as income tax expense, a deferred account, and income tax payable.

Rochester inc had pretax accounting income of 2,700,000 and a tax rate of 20% in 2025 during its first year of operation. Following transactions Received advance rent from pack co for 2026: $96000 Received municipal bond interest $120000 Claimed depreciation for tax purposes in excess of book depreciation $60000 Reported installment sales rev on financial statements in 2025; not recognized for tax purposes until received in 2026: $162000 How much is current tax expense for 2025?

Blossom Co. at the end of 2024, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $1500000 Estimated litigation expense 3500000 (2820000) Installment sales Taxable income $2180000 The estimated litigation expense of $3500000 will be deductible in 2026 when it is expected to be paid. Gross profit of $1410000 from the installment sales will be realized in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1410000 current and $1410000 noncurrent. The income tax rate is 20% for all years. The deferred tax asset to be recognized at the end of 2024 is $0. $136000. $1750000. $700000.