What is the difference between recognition and realization of a deferred tax asset?

Q: Journal Entries: Repairs, Maintenance, Additions, Improvements, and Replacements Prepare the entries...

A: Solution Concept The expenses incurred if they improve the efficiency and provide the future economi...

Q: Emerson and Dakota formed a partnership dividing income as follows: 1. Annual salary allowance to Em...

A: In partnership, the net income should be distributed to partners in the profit sharing ratio. In the...

Q: Barge Incorporated had Beginning inventory for the month that contained 2,000 units that were 70% co...

A: An equivalent unit of production is used in process costing. Process costing is used in that organiz...

Q: Zanesville Pots Co. uses the conventional retail method to estimate ending inventories. The followin...

A: The ending inventory is the inventory left in the business at end of the accounting period.

Q: Instructions O Journal Creative Images Co. offers its services to individuals desining to improve th...

A: 1. Closing Entries - Closing Entries are made at the end of the year to close temporary accounts. Te...

Q: Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains...

A: Variable overhead rate variance = (standard rate per hour- actual rate per hour)*actual hours Variab...

Q: If a company is experiencing cash flow difficulties, it may opt to sell its receivables to a third p...

A: Any company can face cash crunch/ cash burn/ cash difficulties because of inefficient collection fro...

Q: The statement of financial position of Trend, Inc. is presented below.  These are the only accounts ...

A: As per Bartley policy, only first 3 interlinked questions are answered. (a)Accounts Receivables =Tot...

Q: Required: 1. How much is the net working capital of ABC Company? 2. Is it positive or negative?

A: Net working capital refer to the aggregate amount of total assest and total liabilty.

Q: 31, 2021, Max Company committed to a plan to discontinue the fair value of the facilities was P1,000...

A: The loss from discontinued operations will include operating loss from operations and unrealized los...

Q: ow do we find sales in statement of comprehensive income

A: The question provides the Comprehensive income statement for the financial period from 1st Jan 2019 ...

Q: The expected total capital budget for the year is? 2. Assuming the company has 200,000 ordinary sha...

A: Dividend per share is the dividend amount which has been paid by the company to the one per share wh...

Q: The "Budget" column of a flexible budget report reflects: budgeted costs at the budgeted level of ac...

A: Flexible budget shows the difference between Budgeted cost and Actual Cost The Budget column of flex...

Q: The entity has a long -term line of credit Matthew Co. includes one coupon in each bag of dog food i...

A: The expenses that are related to current year sales are recognised during current year and recorded ...

Q: Montana Mining Co. pays $3,926,550 for an ore deposit containing 1,572,000 tons. The company install...

A: Depletion expense of Ore mine = Cost of Ore mine x Tons of Ore mines and sold / Total Ore deposit De...

Q: A one-year insurance policy was purchased on June 1 for $1,680. Journalize the adjusting entry requi...

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Q: On January 1, 2017, Song delivers merchandise to Prabu for 250,000,000 Indonesian rupiah when the sp...

A: Foreign currency Translation In foreign currency translation we are using the method of spot rate an...

Q: What is the difference between tax reliefs and tax credits?

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Q: Uf changes in equity for the year ended 3 Question: För the December 2017, Daffodil Limited (DL) has...

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Q: A-A used piece of rental equipment has 1 1/2 years of useful life remaining. When rented, the equipm...

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Q: The HEYBM CORPORATION presented the following in order to aid the accountant in preparing the CFS: (...

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A:           list of accounts  classification normal balance(debit/credit) increased by debit/credit ...

Q: Help me answer problem 1 and 2 thank

A: An account receivable is defined as it is money that has not been paid by customers after using the ...

Q: At the end of the current year, fees of $4,430 have been earned but have not been billed to clients....

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Q: Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of m...

A:

Q: For 2021 taxable year, determine whether the folliowing is subject to vat. Write "V" in the space pr...

A: The correct answer for the above question is given in the following steps for your reference. 

Q: 4- Prepare the Trial Balance as of Dec 30. Inter Company Trial Balance Date Dr. Cr. Account

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A: This same corridor rule throughout retirement accountancy mandates the presence of any actuarial gai...

Q: A Company received P 5,300,000 for a P 5,000,000 face amount 12% bond, a price that yields 10%. The ...

A: Introduction A bond is refered to as fixed income instrument that is issued by company for generatin...

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Q: ABC Construction started 2020 with the following accounting data: $280,000 in monthly revenue for co...

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Q: Tech Manufacturing Company realized P15,000,000 in sales, with a cost of goods sold of P6,000,000, g...

A: The ratio analysis helps to analyze the financial statements of the business. The Return on assets i...

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Q: The F Company uses the allowance method is used to account for uncollectible receivables. It had the...

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Q: 12. Boston Dollar Store uses the gross method to record purchase discounts and uses a perpetual inve...

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Q: Yel Co. has a bonus agreement which provides that the general manger shall receive an annual bonus o...

A: Solution..     Manager bonus = P280,000  Manager bonus = 10% of income after bonus and tax   

Q: 3. What amount should be recognized as gain on reclassification of the equipment in 2023? * Problem ...

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Q: Luke is an employee at a management firm. His manager tells him that the firm plans to establish a n...

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Q: Requirements: Discuss final income tax using the names and amounts given.

A: Final income tax is the amount of tax which is charged on the income such as interest income which t...

Q: Fallin Pharmaceuticals expects to incur a rate of $20 per hour for its workers on the assembly line....

A: Budget means the expected value of future. Budget is not affected by the actual value as it is prepa...

Q: January 1, 20x1, Peter Corp. acquired the identifiable net assets of Ella Corp. by paying cash of P1...

A: Consideration is an amount that the company will pay to the acquirer company at the time of acquisit...

Q: Available-For-Sale Investments With Known Market Value Porter Inc. is a Canadian public company w...

A:

Q: Oki Company pays $283,500 for equipment expected to last four years and have a $30,000 salvage value...

A: Any expenditure that increases the performance or life of the equipment should be capitalized (i.e.,...

Q: q4

A: In this question, we have to find out the most profitable and least profitable direct material. Dir...

Q: Lex Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Cute Company b...

A: % of boxtops that will be redeemed = 60% on sales of 675,000 boxtops = 6,75,000×60% = 405000 boxes  

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.