Ayayai Corporation began operations in 2020 and reported pretax financial income of $230,000 for the year. Ayayai’s tax depreciation exceeded its book depreciation by $47,000. Ayayai’s tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Ayayai’s pretax financial income and taxable income.Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. Show how the deferred tax liability will be classified on the December 31, 2020, balance sheet.

Q: Sunland, Inc. had pre-tax accounting income of $3300000 and a tax rate of 20% in 2021, its first…

A: Income tax: It is the tax levied by the federal government on the income earned by individuals,…

Q: In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first…

A: Deferred tax asset is like a prepaid tax the benefit of which will be received in future and a…

Q: Bramble Corp. had a Deferred Tax Asset account with a balance of $100,200 at the end of 2019 due to…

A: Journal entries refers to the process of systematically documenting or recording the financial…

Q: Cullumber, Inc. had pre-tax accounting income of $3900000 and a tax rate of 20% in 2021, its first…

A: Pre-tax Accounting Income 3,900,000   Add: Received rent from Jane, Co. for 2022 to be taxed in…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $40 million…

A: Deferred tax assets must be assessed each period in order to determine their recoverability. When…

Q: IT Company reported the following results for the year ended December 31, 2020, its first year of…

A:

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: A.Taxable Income and Income Tax Payable for 30th June 2020: Current Tax Work Sheet for Year Ended…

Q: The book basis of depreciable assets for Erwin Co. is $900,000, and the tax basis is $700,000 at the…

A: Deferred tax liability: The deferred tax liability is the excess, over received, or received in…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: On December 31, 2020, La Puendia Company reported the following: Income before tax for accounting…

A: Deferred tax: When accounting income is different from income under tax laws, it is called as…

Q: Required: Assuming a tax rate of 21%, what will be Yebo’s net income? What will Yebo report in the…

A:

Q: Shamrock Corporation reported the following income for each of the years indicated. For each year,…

A: What is meant by journal entries? It is the first step to record the financial transactions in the…

Q: Oxford Corporation began operations in 2020 and reported pretax financial income of $225,000 for the…

A:

Q: rance, Inc., earned pretax book net income of $1,693,000 in 2020. Prance acquires a depreciable…

A: Working notes :-…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Step 1 For the computation of net income after tax in accounting purpose, there is no consideration…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Deferred tax can be a notional asset or liability to think about corporate pay tax assessment a…

Q: Flint Corp. has a deferred tax asset account with a balance of $71,700 at the end of 2019 due to a…

A: Deferred tax asset in 2020 = Cumulative temporary difference for 2020 x Tax rate = $428,900 x 20% =…

Q: BC Corporation computed a pretax financial income of $6,000,000 for the year ended December 31,…

A: solution  given The tax rate for year 2019 = 32% we need to use the current tax rate for determining…

Q: Dunkin, Inc. reported revenues of $150,000 and expenses of $70,000 in each of its first three years…

A: The effect of the difference between the income tax reported in the books as per GAPP and the income…

Q: For the year ended December 31, 20x1, Tyre Co. reported pretax financial statement income of…

A: Formula: Current tax expense for 20x1 = Taxable income x tax rate

Q: ary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%,…

A: Deferred tax expense refers to the effect of income tax occured on the balance sheet of the company…

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: Sunland Corporation began operations in 2020 and reported pretax financial income of $212,000 for…

A: Solution: Introduction: Deferred tax is an item on the balance sheet of the entity, for excess…

Q: Bossjini Co. reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included in…

A: Given: Pre tax financial income = P6,200,000 Other income which is not taxable = P200,000 Accounting…

Q: Tommy Corporation reported a pretax financial income of P5,000,000 for the year ended December 31,…

A: Temporary & Permanent Differences Temporary differences are the differences  between financial…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $125 million…

A: The answer is as fallows

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $100 million…

A: When there is difference in income as per accounting records and as per tax laws, then it give rise…

Q: In 2020, when the enacted tax rate for the current and all future periods was 20.5%, Garza Corp. had…

A:

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: Bramble Corp. follows IFRS and began operations in 2020 and reported accounting income of $274,000…

A: Deferred tax Deferred tax which are described as the tax difference between the current tax and any…

Q: Jennings Inc. reported the following pretax income (loss) and related tax rates during the years…

A: Income tax expense (benefit) = Operating loss before income taxes X tax rate = 180000 x 20% =…

Q: During 2021, Palm Corporation reported pretax book income of $675,000. Tax depreciation exceeded…

A: Deferred Tax Provisions It is important for the business to calculate the income tax expenses and…

Q: Sheridan Corporation began operations in 2020 and reported pretax financial income of $234,000 for…

A: Deferred tax: Company derives its book profits from the financial statements prepared in accordance…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Deferred tax assets = Net operating loss x enacted tax rate = $440,000 x 25% = $110,000

Q: Callaway Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2017 due to…

A: (a) Date Account Title and Explanation Debit Credit   Dec, 31 2013 Income tax…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability…

A: Deferred Tax for the Year Tax depreciation greater than depreciation expense Deferred tax liability…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Deferred Tax Liabilities are the additional tax payable when the tax as per authorities is higher…

Q: Jennings Inc. reported the following pretax income (loss) and related tax rates during the years…

A: Journal entries are the foundation of bookkeeping that helps in building a base for the preparation…

Q: Acer, Inc. reported a taxable income of P8,000,000 in its Form 1702 for its first year of…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: 1. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely…

A: Given information is: At the end of 2020, Payne Industries had a deferred tax asset account with a…

Q: Teal Corporation began operations in 2020 and reported pretax financial income of $224,000 for the…

A: Deferred Tax Liability=Excess of tax depreciation over book depreciation×Tax rate

Q: Indigo Corporation began operations in 2020 and reported pretax financial income of $234,000 for the…

A: Deferred tax liability arises when the book depreciation is more than tax depreciation in the…

Q: For the year ended December 31, 2021, Jocelyn Company reported pretax financial income of…

A: Total Current tax expense for the current year = Pretax accounting income x tax rate

Q: Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of…

A:

Q: Required: What is the charge for income tax expense that will appear in the statement of profit or…

A: D. $8,000

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: Sandhill Corporation began operations in 2020 and reported pretax financial income of $226,000 for…

A: Answer :- Journal entry to record the income tax expense, deferred income taxes, and income taxes…

Q: The book basis of depreciable assets for Erwin Co. is$900,000, and the tax basis is $700,000 at the…

A: