The deferred tax asset to be recognized is $128000 current. $640000 noncurrent. $0. $128000 noncurrent.

Q: Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for…

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

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $40 million…

A: Deferred tax assets must be assessed each period in order to determine their recoverability. When…

Q: During 2020, Sheffield Co.s first vear of operations, the company reports pretax financial income at…

A:

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: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million…

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

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: At the end of 2019, Vaughn Company has $181,600 of cumulative temporary differences that will result…

A: Year Amount Tax rate Amount 2020 $60,500 30% 18,150.00 2021 50,200 30% 15,060.00 2022…

Q: The records for Bosch Co. show this data for 2019: ●   Gross profit on installment sales…

A: Comparison of Financial Profits with Taxable profits results in the creation of either Deferred tax…

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: 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: 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: 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: During 2020, sheffield Co.'s first year of operations, the company reports pretax financial income…

A: Deferred tax assets: A Deferred Tax Asset is an asset on a Company's balance sheet that may be used…

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: 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: On January 1, 2019, Lala Company received an P800,000, 8%, 2 year note from Move Corporation as…

A: Annual installment = Total amount to be collected / no. of installment = 600000/3 = P200,000

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: 9. Carla Vista Co. at the end of 2020, its first year of operations, prepared a reconciliation…

A: Income tax expenses is total tax amount calculated on taxable income  by effective tax rate.

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: 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: 020 Ming Xo Inc. generated taxable income of $420,000 and incurred expenses of $490,000. What is the…

A: Remittance is defined as any money transferred from one party to another in the form of a bill,…

Q: furnit r equi

A: Introduction Depreciation expense can be defined as a non-cash expenditure which represents the…

Q: Case Development began operations in December 2018. When property is sold on an installment basis,…

A: Solution 1: Case Development Computation of Deferred Tax Liability at December 31, 2021 Year…

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

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $100 million…

A: When there is difference in income as per accounting records and as per tax laws, then it give rise…

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

A: aCompute taxable income for 2019.

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

A: Solution: Taxable income = Pretax income - Tax exempt interest - Taxable temporary difference =…

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

A:

Q: During 2020, Sheffield Co.'s first year of operations, the company reports pretax financial income…

A: Deferred tax asset: A Deferred Tax Asset is an asset on a Company's balance sheet that may be used…

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: In 2019,  Bluebird Corporation had net income from operations of $100,000.  Further, Bluebird…

A: Option (a)Bluebird will have taxable income in 2019 of $100,000 and will have a net capital loss of…

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: Case Development began operations in December 2021. When property is sold on an installment basis,…

A:

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: During 2020, Marigold Co.’s first year of operations, the company reports pretax financial income at…

A: Formulas:

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

A: Deferred tax assets A deferred tax asset is an item on the balance sheet that results from over…

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

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

Q: At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between…

A: Tax is the liability calculated on the income earned and paid to the government.

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: 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: At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between…

A: Tax is the liability paid to the government calculated on the income earned by the company.

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

A: Taxable income: It is the income calculated as per the tax laws and on which the applicable tax…

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

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.