Using the information from Problem #1 above, assume this is the only difference between ABC’s pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable, and show how the deferred tax liability will be classified on the December 31, 2020, balance sheet.
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PLEASE ONLY DO QUESTION 2
1) ABC Company began operations in 2020 and reported pretax financial income of $225,000 for the year. ABC’s tax depreciation exceeded its book depreciation by $40,000. ABC’s tax rate for 2020 and years thereafter is 30%. In its December 31, 2020, balance sheet, what amount of
2) Using the information from Problem #1 above, assume this is the only difference between ABC’s pretax financial income and taxable income. Prepare the
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- Prey Ltd accountant has estimated current tax of P50 000 based on the current profit. The income tax value of the non- current assets are P75 000 and the carrying amount of non-current assets as at 31 December 2020 is P90 000.Tax rate is 22%.1 Using information given above, calculate the deferred tax for the year ended 31 December 2020.2 Calculate the figure of the tax expense that should appear in the statement of profit or loss.3 State how should the deferred tax and current tax should be classified in the statement of financial position.On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of deferred tax asset? b. Compute for the net income after tax. (Please help me by answering the two questions. Have mercy on me please and answer letter A and B. Thank you so much!)1) ABC Company began operations in 2020 and reported pretax financial income of $225,000 for the year. ABC’s tax depreciation exceeded its book depreciation by $40,000. ABC’s tax rate for 2020 and years thereafter is 30%. In its December 31, 2020, balance sheet, what amount of deferred tax liability should be reported? 2) Using the information from Problem #1 above, assume this is the only difference between ABC’s pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable, and show how the deferred tax liability will be classified on the December 31, 2020, balance sheet
- On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of taxable temporary difference? b. What is the amount of total deductible temporary difference? (Please help me by answering the two questions. Please be kind and answer the two. Thank you so much!)ABC Corporation provides you with the following information for the 2020 tax year, which was the company’s first year of operation:Book Income Before Taxes $100,000,000Book Depreciation $ 5,000,000MACRS Depreciation $ 7,500,000Foreign Sourced Income $ 40,000,000Assume a federal tax rate of 21%, disregard state taxes.a. Calculate federal taxable income.b. Calculate the federal tax payable and federal tax expense.c. Given your answer above in b., is a deferred tax asset or a deferred tax liability created? Provide the journal entry needed to reflect this.On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P600,000. The tax rate is 30%. REQUIRED: 1. Compute for the deferred tax expense 2. What is the amount of deferred tax asset? 3. Compute for the net income after tax.
- BE19.2 (LO 1) Oxford Corporation began operations in 2020 and reported pretax financial income of $225,000 for the year. Oxford's tax depreciation exceeded its book depreciation by $40,000. Oxford's tax rate for 2020 and years thereafter is 30%. In its December 31, 2020, balance sheet, what amount of deferred tax liability should be reported? BE19.3 (LO 1, 2) Using the information from BE19.2, assume this is the only difference between Oxford's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable, and show how the deferred tax liability will be classified on the December 31, 2020, balance sheet.On December 31, 2020, Landmark Company reported the following:Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P600,000. The tax rate is 30%. REQUIRED: 1. What is the amount of taxable temporary difference? 2. What is the amount of total deductible temporary difference? 3. Compute for the current tax expense.ABC Company reported pretax financial income of 7,000,000 for the year ended December 31,2021. The taxable income was 6,500,000. The differences is due to accelerated depreciation for income tax purposes. The income tax rate is 25% and ABC Company made estimated tax payment of 500,000 during the current year. REQUIREMENTS: a. Prepare journal entries for 2021. b. Compute the total income tax expenses for 2021
- On December 31, 2020, La Puendia Company reported the following: Income before tax for accounting purposes, $1,185,000 Rent expense for financial accounting purposes, $150,000 Rent expense for tax purposes,$105,000 Tax depreciation, $300,000 Accounting depreciation $150,000 Loss on a case incurred but not yet paid so tax deductible in the future is $60,000 Income tax rate, 30% A. What is the deferred tax expense? B. What is the amount of deferred tax asset? C. How much is the net income after tax.Headland Corporation began operations in 2020 and reported pretax financial income of $226,000 for the year. Headland’s tax depreciation exceeded its book depreciation by $39,000. Headland’s tax rate for 2020 and years thereafter is 30%. In its December 31, 2020, balance sheet, what amount of deferred tax liability should be reported?Principal Services Group had a 2021 Net Loss of $460,000. The company tax rate is 27% and pre-tax income for the years 2022, 2023, and 2024 were $190,000, $630,000, and $430,000 respectively. Answer the following: A. Provide the journal entry for 2021. B. Provide the journal entry for 2023. Note: you must specify whether the deferred tax account is an asset or liability.