9. A reconciliation of Gentry Company's pretax accounting income with its taxable income for 2022, its first year of operations, is as follows: Pretax accounting income - P3,000,000 Excess tax depreciation - (90,000) Taxable income - P2,910,000 The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2022, 35% in 2023 and 2024, and 30% in 2025. The total deferred tax liability to be reported on Gentry's statement of financial position at December 31, 2022, is a.P27,000. b.P36,000. c.P30,000. d.P31,500.

Q: Sherrod, Incorporated, reported pretax accounting income of $96 million for 2024. The following…

A: Tax liability and incomeThe amount of money paid by the government on the income or gains earned by…

Q: Year Accounting Income 2023 2024 2025 2026 $463,000 431,000 396,000 470,000 Taxable Income $300,000…

A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Q: The following information is available for Marigold Corporation for 2020. 1.   Depreciation…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

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: axable income and applicable tax rates for C.J. Company’s first four years are shown below. For each…

A: Income Tax Payable on income after adjustment of all carry forward of losses.  Taxable income is the…

Q: In its 2021 income statement, Crane Corp. reported depreciation of $3600000 and interest revenue on…

A: Deferred tax liability is the amount of liability that arises on account of differences in items as…

Q: For the current year, LNS corporation reported the following taxable income at the end of its first,…

A: Taxable income comprises all forms of remuneration, whether cash or services, as well as property.…

Q: KAY Co. reported net income for the current year 2021 at 4,180,000 before taxes. Included in the…

A: A deferred tax asset is an asset to the Company that arises if the Company has overpaid taxes or…

Q: Oriole, Inc. had pre-tax accounting income of $3000000 and a tax rate of 20% in 2025, its first year…

A: In order to help pay for government programs and services, the government may impose taxes or levies…

Q: 19.At 30 June 2023, Barry Ltd estimates it will be required to pay income tax expenses of $62 000…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting Income of $29 million and…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The net income…

Q: Arndt, Incorporated reported the following for 2024 and 2025 ($ in millions): Revenues Expenses…

A: Required changes in Deferred tax liability / Assets = Ending balances required - Beginning…

Q: Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a…

A: Given:Tax rate for 2018 and 2019: 30%Tax rate for the remaining years: 25%All income and losses are…

Q: Caramel Co. at the end of 2022, its first year of operations, prepared a reconciliation between…

A: when there is taxable temporary difference arise between accounting profit and tax profit then…

Q: The pretax financial income of x Company differs from its taxable income throughout each of 4 years…

A: Given Information:  Non deductible expense - $29,300 Tax rate for 2021 - 20%

Q: Sheridan, Inc. had pre-tax accounting income of $3200000 and a tax rate of 20% in 2021, its first…

A: To determine the deferred tax accounts and balances at the end of 2021, we need to identify…

Q: Cullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for…

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

Q: The pretax financial income of Tamarisk Company differs from its taxable income throughout each of 4…

A: The decrease in the tax rate for the second year would result in a decrease in deferred tax…

Q: Wynn Farms reported a net operating loss of $195,000 for financial reporting and tax purposes in…

A: Income Tax: The tax that taxpayers pay on the income earned by them in any accounting year is termed…

Q: Cullumber Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes…

A: Like any other asset, a deferred tax asset is also subject to the valuation of its proper realizable…

Q: The 2020 financial statements for Leggett & Platt, Inc. report the following information: Year ended…

A: Computation of depreciation adjustments due to change in useful life of assets Total Cost of…

Q: The pretax financial income of Tamarisk Company differs from its taxable income throughout each of 4…

A: SOLUTION-                                                                     INCOME STATEMENT…

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

A: aCompute taxable income for 2019.

Q: ABC Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Solution: Taxable income = Pretax income - Tax exempt interest - Taxable temporary difference =…

Q: During 2020, Sheffield Co.'s first year of operations, the company reports pretax financial income…

A: Deferred tax asset: A Deferred Tax Asset is an asset on a Company's balance sheet that may be used…

Q: In 2022, NB, Incorporated's federal taxable income was $242,000. Compute the required installment…

A: To compute the required installment payments for NB Incorporated for the 2022 tax year, we need to…

Q: Greene Co. has pretax book income for the year ended December 31, 2022 in the amount of $315,000 and…

A: The objective of the question is to calculate the deferred tax liability for Greene Co. for the year…

Q: The accounting income of Pharoah Corporation and its taxable income for the years 2023 to 2026 are…

A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Q: The following information is available for Metlock Inc. for 2024: 1. Excess of tax depreciation over…

A: Answer:- Journal entry meaning:- In the company's books, a journal entry serves as a record of a…

Q: For 2022, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest…

A: Interest expense refers to the cost which is non-operating in nature that is shown in the income…

Q: Prepare the Income stmt for 2021 beginning with income before income taxes

A:

Q: Makena is a salaried, exempt employee with Caxkyat Stores. Makena is single with one dependent under…

A: The payroll register provides numerous benefits for employers, including accurate record-keeping,…

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.