The information that follows pertains to Esther Food Products:a. At December 31, 2018, temporary differences were associated with the following future taxable (deductible)amounts:Depreciation $ 60,000Prepaid expenses 17,000Warranty expenses (12,000)b. No temporary differences existed at the beginning of 2018.c. Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31,2018.d. The tax rate is 40%.Required:Determine the amounts necessary to record income taxes for 2018, and prepare the appropriate journal entry.

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Q: What amount should be reported as net income for the quarter ended September 30, 2021?

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A:

Q: T Company reports the following revenues and expenses in its pretax financial income for the year…

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Q: 33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation…

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Q: T Company reports the following revenues and expenses in its pretax financial income for the year…

A: As per our protocol we provide solution to the one question but you have asked for solutions of two…

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Q: pretax accounting income

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

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A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: Scarlet Company had pretax accounting income of P2,400,000 during 2020. Scarlet Company’s temporary…

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Q: The following taxable income data is available for ACME Incorporated: Year Taxable Income Tax Rate…

A: Income statement- The Income Statement is one of a company’s heart fiscal statements that…

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A: Operating income:   A profit that is realized after deducting operating expenses from the sales…

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A: The question is based on the concept of Business Accounting.

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Q: Sure Ako Corporation reported pretax income of P4,500,000 for the year ended December 31, 2022. The…

A: Taxable income can be computed as per the following Pretax Income…

Q: The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable…

A: Introduction:- Individuals or enterprises (taxpayers) pay an income tax depending on their earnings…

Q: What is the temporary difference on December 31, 2018? State the amount and then whether taxable…

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Q: On January 1, 2021, Monster Company changed to the percentage of completion method of income…

A: Percentage of Completion Method:-It is required to report revenue and expenses on a period-by-period…

Q: Pretax financial income for Lake Inc. is $300,000, and itstaxable income is $100,000 for 2018. Its…

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

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Q: Sweet and Sour Company had pretax accounting income of P2,400,000 during 2020. Sweet and Sour…

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Q: Pretax financial income for Lake Inc. is $300,000, and its taxable income is $100,000 for 2018. Its…

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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.