Umasa Corporation reported the following information for the current year: Pretax financial income Income from exempt municipal bonds Rent received in advance P 9,000,000.00 2,000,000.00 1,500,000.00 Depreciation deduction for income tax purposes in excess of depreciation reported for financial reporting purposes Estimated tax payment for current year Income tax rate 1,000,000.00 500,000.00 30% 21. What amount of current tax liability should be reported at the year-end? B. P2,250,000 A. P1,750,000 C. P2,750,000 D. P2,850,000 22. What is the total tax expense? A. P2,700,000 В. Р2, 100,000 С.Р2,250,000 D. P1,600,000

Q: An entity reported pretax financial income of P8,000,000 for the current year. The taxable income…

A: Total tax payable = taxable income x income tax rate = P7,000,000 x 30% = P2,100,000

Q: Grand Corporation reported pretax book income of $600,000. Tax depreciation exceeded book…

A: The following computations are done as per the information provided.

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A: Income tax payable is an obligation by the tax payer to the government on the taxable income.

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

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A: Current portion of provision for income taxes  = Taxable income x income tax rate

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A: Solution: Total income tax expense for the current year = pretax accounting income * tax rate

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A: Solution:- a) Calculation of BDI’s tax expense for financial statement purposes as follows:- Basic…

Q: For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of…

A: 1.

Q: An entity reported pretax financial income of P8.000,000 for the current year. The taxable income…

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Q: 2. Debtor Corporation shows the following data during taxable year: Sales P 500,000 Interest Income,…

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Q: Grand Corporation reported pretax book income of $720,000. Tax depreciation exceeded book…

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A: Taxable income is the income earned during the period which is taxable by the taxation authorities.…

Q: Martinez Corporation reports pretax financial income of $264,100 for 2020. The following items cause…

A: Taxable income= Pretax financial income +/- temporary differences +/- permanent differences.…

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A: Taxable income = Income before tax + Rent received in advance - Interest income from depository…

Q: 2. For the year ended December 31, 20x1, Mont Co.'s books showed income of P600,000 before provision…

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A: "Since you have posted a question with multiple sub-parts, we will solve the first 3-sub parts for…

Q: Integrity Company reported pre-tax financial income of P400,000 for 2022. In the computation of…

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Q: 4 TarHeel Corporation reported pretax book income of $1,038,000. During the current year, the net…

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A: Since you have posted a question with multiple sub-parts , we will solve the first 3 sub-parts for…

Q: Angel Corporation reported pretax book income of $1,008,000. During the current year, the net…

A: Hypothetical tax expenses =Pretax Income × Statutory Tax=$1,008,000×34%=$342,720

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A: We have to calculate tax amout for current year

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A: Interest received is subject to final witholding tax. It will be treated as permanent difference…

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

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A: Answer are as follows

Q: Corning-Howell reported taxable income in 2021 of $120 million. At December 31, 2021, the reported…

A: Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question…

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.