Analysis of the assets and liabilities of Beef Brisket Corporation on December 31, 2019 disclosed assets with a tax basis of P1,000,000 and a book basis of P1,300,000. There was no difference in the liability basis. The difference in asset basis arose from temporary difference that would reverse in the following years: 2020 - P80,000 2021 - 70,000 2022 - 72,000 2023 - 40,000 2024 - 38,000 The enacted tax rates are 30% for the years 2019 – 2022 and 32% for the years 2023 – 2024. What is the total deferred tax liability at December 31, 2019?

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A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

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Q: XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

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Q: Dario Corp. is a publicly accountable entity with a December 31 year end. The deferred income tax…

A: Deferred tax expense occurs when there is temporary difference.   Calculation of temporary…

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: The extra amount paid as taxes i.e. advance payment for next year or over payment of the amount due…

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A: Deferred Tax The purpose of creating deferred tax which is any kind of excess amount which are…

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

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…

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

Q: ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC…

A: The Total Incone tax expense will be P5,650,000.

Q: (b) Assuming that it is more likely than not that $13,600 of the deferred tax asset will not be…

A: Deferred Tax Asset is an item which is shown in the balance sheet that reduces the company future…

Q: a) Determine the taxable income and income tax payable for the year to 30 June 2020.  b) Determine…

A: Income: Income includes all the income that belong to the taxpayer, both taxable and non-taxable.…

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A:

Q: Compute taxable income for 2019. Taxable income   $enter Taxable income in dollars     (b)…

A: Deferred tax asset is the tax asset which the company has paid in advance to the government during…

Q: Grouper Corp. has a deferred tax asset account with a balance of $71,600 at the end of 2019 due to a…

A: Solution:-a The following journal entry required for record income tax payable, income tax expense…

Q: Thiel Company reports the following deferred tax items at the end of 2019: Deferred Tax Item #…

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Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: A deferred tax liability or asset represents the increase or decrease in taxes payable or refundable…

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…

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A: Compute taxable income for 2019 as shown below:

Q: Analysis of the assets and liabilities of Someday Corporation on December 31, 2019 disclosed assets…

A: Solution: Total deferred tax liability = Reversible difference * respective tax rates

Q: PRANCER Company, at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Total income tax = Taxable amount x income tax rate = 250000 x 30% = 75,000

Q: Ayres Services acquired an asset for $116 million in 2018. The asset is depreciated for financial…

A: Ayres Services is using MACRS for tax purposes and straight-line depreciation for the asset. As the…

Q: CC corporation (a calendar-year  C corporation) has a net operating loss (NOL) carryover to 2021 in…

A: calculation of taxable income and tax rate are as follows.

Q: Determine the taxable income and income tax payable for the year to 30 June 2020? Prepare the…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: At the beginning of 2019, Norris Company l1ad a deferred tax liability of $6,400, because of the use…

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

Q: Pole Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

A:

Q: Bridgeport Inc. incurred a net operating loss of $578,700 in 2020. Combined income for 2017, 2018,…

A: A journal entry is the first step in the accounting cycle. A journal details all financial…

Q: Ayres Services acquired an asset for $64 million in 2021. The asset is depreciated for financial…

A: Solution: - The following formulas used to calculate the cumulative temporary book tax difference…

Q: Oriole Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Deferred tax asset can be defined as a balance sheet item which shows the tax expenses that are…

Q: he income tax rate is 30% for all years. Income tax payable is?

A: Income Tax is a form of indirect tax. It is the tax payable on the amount of income earned during a…

Q: Sheridan Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Income taxes payable = taxable income * tax rate

Q: ABC Company reported pretax financial income of P 6,500,000 and P 8,200,000 for years 2019 and 2020,…

A: In Straight Line Method of depreciation the depreciation is calculated by…

Q: The following information is available for Sandhill Corporation for 2019 (its first year of…

A: Solution : Date  Particulars Debit  Credit 2019 Income tax expense  ( 284,700 * 20% ) 56,940…

Q: Lax Company at the end of 2019, its first year of operations, prepared a reconciliation between…

A: Income Tax is a form of indirect tax. It is the tax payable on the amount of income earned during a…

Q: Analysis of the assets and liabilities of Beef Brisket Corporation on December 31, 2019 disclosed…

A: Soluiton: Total deferred tax liability at Dec 31, 2019 = Reversible amounts*tax rates

Q: The following information is available for Sandhill Corporation for 2019 (its first year of…

A: Pretax financial income $284,700 Excess of tax depreciation over book depreciation -$40,400 Rent…

Q: Teal Corp. has a deferred tax asset account with a balance of $73,600 at the end of 2019 due to a…

A:

Q: PRANCER Company, at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Total tax = Taxable amount x income tax rate = 250000 x 30% = 75,000

Q: What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?

A: Calculate the balances of the deferred tax liability and deferred tax asset at 30 June 2020.…

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

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

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.