9. Black Co., organized on January 2, 20x0, had pretax financial statement income c P500,000 and taxable income of P800,000 for the year ended December 31, 20×C The only temporary differences are accrued product warranty costs, which Blach expects to pay as follows: 20x1 P100,000 20x2 50,000 20x3 50,000 20x4 100,000 The enacted income tax rates are 25% for 20x0, 30% for 20x1 through 20x3, and 35% for 20x4. Black believes that future years' operations will produce profits. In its December 31, 20x0, balance sheet, what amount should Black report as deferred tax

9. Black Co., organized on January 2, 20x0, had pretax financial statement income c P500,000 and taxable income of P800,000 for the year ended December 31, 20×C The only temporary differences are accrued product warranty costs, which Blach expects to pay as follows: 20x1 P100,000 20x2 50,000 20x3 50,000 20x4 100,000 The enacted income tax rates are 25% for 20x0, 30% for 20x1 through 20x3, and 35% for 20x4. Black believes that future years' operations will produce profits. In its December 31, 20x0, balance sheet, what amount should Black report as deferred tax

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Stone Inn earned $167,284 in taxable income for the year. How much tax does the company owe on this income? TxableIncome 60.000 Tox Rale 18% 50.001- 75.000 75.001-100.000 100.001- 35.000 335.001- 10,000,000 a. $46,311.02 b. $48,490.76 c. $54,519.27 d. $65,240.76
am.104.
The pretax financial income of Tamarisk Company differs from its taxable income throughout each of 4 years as follows. Year PretaxFinancial Income Taxable Income Tax Rate 2020 $295,000 $180,000 35 % 2021 320,000 217,000 20 % 2022 335,000 264,000 20 % 2023 435,000 592,000 20 % Pretax financial income for each year includes a nondeductible expense of $29,300 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Prepare the Income stmt for 2021 beginning with income before income taxes
please answer all parts within 30 minutes...
Dix Company reported operating income (loss) before income tax in its first three years of operations as follows: 20X1 $ 100,000 20X2 (200,000 ) 20X3 240,000 Dix had no permanent or temporary differences between book income and taxable income in these years. Assume a 21% tax rate for all years, and assume there is no valuation allowance. Required: What amount of taxes does Dix pay related to its 20X3 tax return?
6
A company that has reported an income of sh 2,400,000 computed without subtracting either the bonus or corporation taxes. The bonus is to be based on income after taxes but before deducting bonuses. The corporation tax rate is 30% and the bonus payable is 10%. Required; Calculate the bonus and tax payable Show the double entry in respect of bonus and income taxes payable.
One branch of Galssy Company earned an income of P560,000 before bonus and taxes for 2020. The applicable tax rate for Galssy is 25%.• 9% of income after bonus and taxes• 7.5% of income after bonus but before taxes• 8% of income before bonus but after taxes• 7% of income before bonus and taxes Of the four bases for bonus expense, how much would yield the lowest amount?
Problem 4: JIMIN Company has an agreement to pay the executive officers a bonus of 5% of the entity's earnings. The income for the year before bonus and tax is P8,750,000. The income tax rate is 30% of income after bonus. Requirements: Determine the BONUS under each of the following independent assumptions: 9. A. Bonus is based on income before bonus and before tax. В. Bonus is based on income after bonus and after tax. C. Bonus is based on income after bonus but before tax. D. Bonus is based on income after tax but before bonus
A company has accounts receivable of $300 000 and an associated doubtful debts allowance of $60 000. The revenue associated with the accounts receivable of $300 000 has already been included in taxable profit. The doubtful debts will be deductible when the amount is actually written off as bad with a related deduction to accounts receivable. REQUIRED a) Assuming that the tax rate is 30 percent, what is the amount of the temporary difference? b) Does this give rise to a deferred tax asset or a deferred tax liability, and what is the amount of the deferred tax asset/liability Please donot provide solution in image format provide solution in step by step format and asap
11. Ace Company had a pretax accounting income of P5,000,000 for its first year of operations. The following differences are noted between accounting income and taxable income: 1) Nondeductible expenses - 200,000; 2) Nontaxable revenue - 500,000; 3) Gross income on installment sales reported in accounting income but not in taxable income - 1,000,000; 4) Provision for doubtful accounts - 100,000; and 5) Income tax rate - 30%. COMPUTE THE FOLLOWING: 1. Accounting income subject to tax; 2) Taxable income; 3) Total income tax expense; and 4) Current tax expense.
Q1. For Year 1, Pac Co. has a standard assurance-type warranty on its equipment. It estimated its 2-year equipment warranty costs based on $100 per unit sold in Year 1. Experience during Year 2 indicated that the estimate should have been based on $110 per unit. The effect of this $10 difference from the estimate is reported: In Year 2 income from continuing operations. As a cumulative amount, net of tax, below Year 2 income from continuing operations. As an accounting change retrospectively applied to Year 1 financial statements. As a correction of an error requiring Year 1 financial statements to be restated.