M 20 The following information was extracted from the records of Terra Ltd. for the year ended 30June 2024.Accounts receivableAccumulated depreciation - motor vehiclesAllowance for doubtful debtsBad debts expenseDeferred tax assetDeferred tax liabilityInsurance ExpenseInterest payableMotor vehiclesPrepaid insuranceRent receivableRent revenueAdditional informationTerra LTDas 30 June 2024✓ Interest expenses✓Estimated useful-life for tax purposes✓ Estimated useful-life for accountingRent receivedOpening balance for prepaid insuranceOpening balance for the allowance for doubtful debtsTax rateProfit before tax90,000(44,000)(18,000)20,00010,7505,39012,8007,000220,00024,0003,4005,00010 years15 years2,00018008,0003,00030%341,200Required:a. Prepare the current tax worksheet and related journal entries.b. Prepare the deferred tax worksheet and related journal entries.

INTRODUCTION Current tax: The amount of income tax that has been found to be due (salvage value) in…

The following information was extracted from the records of Terra Ltd. for the year ended 30 June 2024. Accounts receivable Accumulated depreciation - motor vehicles Allowance for doubtful debts Bad debts expense Deferred tax asset Deferred tax liability Insurance Expense Interest payable Motor vehicles Prepaid insurance Rent receivable Rent revenue Terra LTD as 30 June 2024 Additional information ✔Estimated useful-life for tax purposes ✓ Estimated useful-life for accounting ✔Rent received 90,000 (44,000) (18,000) 20,000 10,750 5,390 12,800 7,000 220,000 24,000 3,400 5,000 Opening balance for prepaid insurance ✓ Opening balance for the allowance for doubtful debts ✓ Interest expenses ✓ Tax rate ✓Profit before tax 10 years 15 years 2,000 1800 8,000 3,000 30% 341,200 Required: a. Prepare the current tax worksheet and related journal entries. b. Prepare the deferred tax worksheet and related journal entries.

The following information was extracted from the records of Terra Ltd. for the year ended 30 June 2024. Accounts receivable Accumulated depreciation - motor vehicles Allowance for doubtful debts Bad debts expense Deferred tax asset Deferred tax liability Insurance Expense Interest payable Motor vehicles Prepaid insurance Rent receivable Rent revenue Terra LTD as 30 June 2024 Additional information ✔Estimated useful-life for tax purposes ✓ Estimated useful-life for accounting ✔Rent received 90,000 (44,000) (18,000) 20,000 10,750 5,390 12,800 7,000 220,000 24,000 3,400 5,000 Opening balance for prepaid insurance ✓ Opening balance for the allowance for doubtful debts ✓ Interest expenses ✓ Tax rate ✓Profit before tax 10 years 15 years 2,000 1800 8,000 3,000 30% 341,200 Required: a. Prepare the current tax worksheet and related journal entries. b. Prepare the deferred tax worksheet and related journal entries.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at December 31, 2020, if the double-declining-balance method were used? a. $187,200 b. $192,000 c. $195,200 d. $312, 000
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Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
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MWF Company had the following transactions during the quarter ended March 31, 2021:• Loss on Sale- 900,000• Payment of fire insurance premium for calendar year 2021- 400,000• Payment of rent for 1 year- 1,200,000• Payment of property tax assessed for calendar year 2021- 500,000What total amount should be included in the determination of the net income or loss for the quarter ended March 31, 2021?
n December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of taxable temporary difference? * b. What is the amount of total deductible temporary difference? * c. Compute for the current tax expense. * d. Compute for the deferred tax expense. * e. What is the amount of deferred tax asset? * f. Compute for the net income after tax. * Oh no! Our expert couldn't answer your question. Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience. Here's what the expert had to say: Hi and thanks for your question! Unfortunately it looks incomplete. Please resubmit…
On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of taxable temporary difference? b. What is the amount of total deductible temporary difference? (Please help me by answering the two questions. Please be kind and answer the two. Thank you so much!)
Leni Company had the following transactions during the quarter ended March 31, 2021:• Loss on Sale- 900,000• Payment of fire insurance premium for calendar year 2021- 400,000• Payment of rent for 1 year- 1,200,000• Payment of property tax assessed for calendar year 2021- 500,000What total amount should be included in the determination of the net income or loss for the quarter ended March 31, 2021?
On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expensefor financial accounting purposes is P1,500,000 while rent expense for taxpurposes is P1,050,000; Tax depreciation is P3,000,000 while accountingdepreciation is P1,500,000; Loss on a case incurred but not yet paid sotax-deductible in the future is P600,000. The tax rate is 30%. What is the amount of deferred tax asset?
On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expensefor financial accounting purposes is P1,500,000 while rent expense for taxpurposes is P1,050,000; Tax depreciation is P3,000,000 while accountingdepreciation is P1,500,000; Loss on a case incurred but not yet paid sotax-deductible in the future is P600,000. The tax rate is 30%. Compute for the net income after tax.
On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expensefor financial accounting purposes is P1,500,000 while rent expense for taxpurposes is P1,050,000; Tax depreciation is P3,000,000 while accountingdepreciation is P1,500,000; Loss on a case incurred but not yet paid sotax-deductible in the future is P600,000. The tax rate is 30%. What is the amount of total deductible temporary difference?
The following information was extracted from the records of Lodh Ltd for the year ended 30 June 2021. Lodh LTD Statement of financial position (extract) As at 30 June 2021 Assets Accounts Receivable $50,000 Allowance for doubtful debts (4,000) $46,000 Plant 200,000 Accumulated depreciation - Plant (50,000) 150,000 Liabilities Interest Payable 2,000 Provision for long service leave 10,000 Additional information · The accumulated tax depreciation for machines at 30 June 2021 was $66 667. · Long service leave has not been taken by any employee during the year. · The tax rate is 30%. Required Prepare a (partial) deferred tax worksheet to identify the TTD and DTD from the above information [You are required to input CA (Carrying Amount) and TB (tax Base) only in the response…