The ending balance of deferred tax asset and deferred tax liability . Given information: Taxable income is $2,500,000. Book income is $2,331,500. Tax rate is 40%.

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Answer 1

Question

Chapter 17, Problem 17.11P

a.

To determine

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

b.

To determine

Deferred tax provision of asset and liability for current year.

c.

To determine

To prepare: Journal entry to record income tax provision for current year.

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INCOME TAXES SURVIVE Company reported net income for the current year 2020 before taxes is P3,511,000. The following differences were noted between the financial reporting and tax reporting: Financial Tax Interest on depository accounts P 53,000 Warranty expense 260,000 P 115,000 Revenue from installment sales 584,000 319,000 Advance collections from customers 75,000 Provision for probable losses 406,000 Insurance premiums on senior managers' life insurance 120,000 The income tax rate is 30% and is not expected to change in the future. Estimated tax payments for the last three quarters amounted to P850,000. . 1. At what amount should income tax expense be reflected in the income statement ending December 31, 2020?

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Answer 2

Question

Chapter 17, Problem 17.11P

a.

To determine

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

b.

To determine

Deferred tax provision of asset and liability for current year.

c.

To determine

To prepare: Journal entry to record income tax provision for current year.

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Answer 3

Question

Chapter 17, Problem 17.11P

a.

To determine

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

b.

To determine

Deferred tax provision of asset and liability for current year.

c.

To determine

To prepare: Journal entry to record income tax provision for current year.

Expert Solution & Answer

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Answer 4

Question

Chapter 17, Problem 17.11P

a.

To determine

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

b.

To determine

Deferred tax provision of asset and liability for current year.

c.

To determine

To prepare: Journal entry to record income tax provision for current year.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 17, Problem 17.11P

a.

To determine

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

b.

To determine

Deferred tax provision of asset and liability for current year.

c.

To determine

To prepare: Journal entry to record income tax provision for current year.

Answer 6

Chapter 17, Problem 17.11P

a.

To determine

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

Answer 7

Chapter 17, Problem 17.11P

a.

To determine

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

Answer 8

b.

To determine

Deferred tax provision of asset and liability for current year.

Answer 9

b.

To determine

Deferred tax provision of asset and liability for current year.

Answer 10

c.

To determine

To prepare: Journal entry to record income tax provision for current year.

Answer 11

c.

To determine

To prepare: Journal entry to record income tax provision for current year.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 17 - Prob. 17.1Q Ch. 17 - When will income tax expense and income taxes...Ch. 17 - Will permanent differences cause the effective tax...Ch. 17 - When do permanent differences arise?Ch. 17 - How are deferred tax assets and deferred tax...Ch. 17 - Prob. 17.6Q Ch. 17 - Prob. 17.7Q Ch. 17 - Prob. 17.8Q Ch. 17 - Prob. 17.9Q Ch. 17 - How does a firm determine the need for a valuation...

The ending balance of deferred tax asset and deferred tax liability . Given information: Taxable income is $2,500,000. Book income is $2,331,500. Tax rate is 40%.

Solution Summary: The author concludes that the ending balance of deferred tax asset is 68,600, and the tax liability is 260,200.

Concept explainers

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The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.

Deferred tax provision of asset and liability for current year.

To prepare: Journal entry to record income tax provision for current year.

Want to see the full answer?

Chapter 17 Solutions

The ending balance of deferred tax asset and deferred tax liability . Given information: Taxable income is $2,500,000. Book income is $2,331,500. Tax rate is 40%.

Solution Summary: The author concludes that the ending balance of deferred tax asset is 68,600, and the tax liability is 260,200.

Concept explainers

Videos

The ending balance of deferred tax asset and deferred tax liability. Given information: Taxable income is $2,500,000. Book income is $2,331,500. Tax rate is 40%.

Deferred tax provision of asset and liability for current year.

To prepare: Journal entry to record income tax provision for current year.

Want to see the full answer?

Chapter 17 Solutions

The ending balance of deferred tax asset and deferred tax liability.

Given information:

Taxable income is $2,500,000.

Book income is $2,331,500.

Tax rate is 40%.