Identify the appropriate answer for the given statement from the given choices.

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 7, Problem 12P

To determine

Identify the appropriate answer for the given statement from the given choices.

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that are sold on the installment basis. Rona Company started to manufacture in 2020 copy machines payments are received for tax purposes. Rona Company recognizes revenue when equipment is sold for financial reporting purposes, and when installment financial reporting purposes and P1,500,000 for tax purposes. Koanancial reporting purposes, and when installment . 2020, the entity recognized gross profit of P6,000,000 for Enancial reporting purposes and P1,500,000 for tax purposes. The amounts of gross profit expected to be recognized for tax purposes in 2021 and 2022 are P2,500,000 and P2,000,000, respectively. The entity guaranteed the copy machines for two years. Warranty costs are recognized on the accrual basis for financial reporting purposes and when paid for tax purposes. Warranty cost accrued in 2020 is P2,500,000 but only P500,000 of warranty cost is paid in 2020. It is expected that in 2021 and 2022, P1,000,000 and P1,000,000 respectively, of warranty cost will be paid. In…

Show the solution in good accounting form. Thank you! 1. What amount should be reported as current tax expense for the current year? a. ₱ 1,350,000 b. ₱ 2,250,000 c. ₱ 1,950,000 d. ₱ 1,050,000 2. What amount should be reported as total income tax expense? a. ₱ 2,250,000 b. ₱ 1,050,000 c. ₱ 1,350,000 d. ₱ 1,950,000 3. What amount of income tax payable should be presented at year-end? a. ₱ 1,050,000 b. ₱ 2,250,000 c. ₱ 1,350,000 d. ₱ 1,950,000

What would be the answer to problem (11) if a consolidated tax return were filed?a. –0–b. $300c. $1,500d. $7,500

Answer 2

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Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 7, Problem 12P

To determine

Identify the appropriate answer for the given statement from the given choices.

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 7, Problem 12P

To determine

Identify the appropriate answer for the given statement from the given choices.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.

Chapter 7, Problem 12P

To determine