The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The following related facts were gathered (Income tax rate for current and future years is 30%):   Cumulative temporary differences, 12/31/2021 Taxable temporary differences- P1,480,000 Deductible temporary differences- P750,000   Permanent differences: Non-taxable revenue- P200,000 Non-deductible expenses- P600,000   Deferred tax asset, December 31, 2020- P150,000 Deferred tax liability, December 31, 2020- P300,000              How much is the total income tax expense (current and deferred) for the year 2021?   P969,000 P900,000 P831,000 P813,000

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: In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first…

A: Deferred tax asset is like a prepaid tax the benefit of which will be received in future and a…

Q: P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible…

A: Tax expenses for a particular year is reported as :   CURRENT TAX DEFERRED TAX

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

A: Solution 1: Payne Industries Journal Entries Event Particulars Debit (In Million) Credit (In…

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

A: Computation of Required balance and recognition of Deferred tax liability and Deferred tax Assets…

Q: or the year ended Dec. 31, 201X, CACA Co. reported pre-tax financial income of 9,500,000. Its…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: At the end of the year, the deferred tax asset account had a balance of $16 million attributable to…

A: Deferred Tax: Deferred tax is an amount i.e. computed on the basis of tax liability on the income as…

Q: In its 2021 income statement, Crane Corp. reported depreciation of $3600000 and interest revenue on…

A: Deferred tax liability is the amount of liability that arises on account of differences in items as…

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

A: There is a difference between taxable income and accounting income . Accounting income means income…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

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: ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC…

A: The Total Incone tax expense will be P5,650,000.

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

A: Accounting income and taxable income of business can be different due to some temporary differences…

Q: Differences between pretax accounting income and taxable income were as follows during 2021:…

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

Q: At the end of 2019, Lucretia McEvil Company has $180,000 of cumulative temporary differences that…

A: a.    Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes,…

Q: Sherrod, Inc., reported pretax accounting income of $76 million for 2021. The following information…

A: Every business must be evidenced in at least two places, according to the logic of a journal entry…

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: Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and for 2022.…

A: Determination of taxable income    2020 2021 2022 Pretax Financial income $100,000 $120,000…

Q: Nash Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,690,000…

A: 1) Present tax rate 40%  = 1476000 / 3690000           Deffered tax liability =  ($3,690,000 x…

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

A: Note:  income tax provision is created on taxable income.   Total provision for income tax =…

Q: Sheridan Company has the following two temporary differences between its income tax expense and…

A: A deferred tax asset is an item on the balance sheet that results from an overpayment or advance…

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

A: Step 1 Current tax to be reportable is equal to current tax + Deferred tax liability – Deferred tax…

Q: At the end of the first year of operations. an entity had taxable temporary differences totaling…

A: Calculation of Deferred tax expense / Deferred tax benefit :- Deferred tax expense =  taxable…

Q: The pretax financial income of Truttman Company differs from its taxable income throughout each of 4…

A: a. Prepare journal entries to record income taxes for all 4 years as shown below:

Q: At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million…

A: Given information is: Deferred tax asset balance at the end of 2017= $30 million Temporary book tax…

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 the 30 June 2021 B Ltd had a balance of $198,000 in its deferred tax liability account and…

A: The accounting profit and taxable profit are different. There are certain events which are…

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: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…

A: Solution: Financial income subject to tax = taxable income - Excess book depreciation - Accrual of…

Q: As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary…

A: Deferred Tax A deferred tax liability is described under IAS 12 as the amount of income tax due in…

Q: t December 31, 2022 Mindoro Corporation’s taxable profit is P5,000,000. The following items are the…

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

Q: Omskirt Company reported an excess of warranty expense over warranty deductions of P720,000 for the…

A: The company has to create a deferred tax asset amounting to P216000 on P7,20,000 at the rate of…

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: Apple Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Current  portion and deferred  portion  of income  tax provisions  are two  types of provisions in…

Q: At year-end of the first year of operations, Liezl Company had taxable temporary differences…

A: Taxable income for the year = Pretax financial income + taxable temporary difference - deductible…

Q: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…

A: taxable income of P1,658,000

Q: KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the…

A:

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

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: 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: 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: Pretax financial income for Lake Inc. is $300,000, and its taxable income is $100,000 for 2021. Its…

A:

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: 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: On January 2021, Mercury Corporation is engaged in the sale of goods and services with net sales and…

A: Income tax is used to fund government services, pay debts, and give commodities to citizens.…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: ABC Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Solution: Taxable income for 2020 = Pretax financial income - Tax exempt interest - Taxable…

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

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

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.