9. Carla Vista Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $1050000 Estimated litigation expense 2750000 Installment sales (2200000) Taxable income $1600000 The estimated litigation expense of $2750000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1100000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1100000 cur

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

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

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: Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable…

A: Future taxable amount = $50,400 + $55,900 + $61,100                                      = $167,400…

Q: Pretax financial income $930000 Estimated litigation expense 2550000 Installment sales (2040000)…

A: Deferred tax liability means taxable amount is less then income as per financial income. And tax…

Q: On July 1, 2020, ATLAS grants a 5-year P5,000,000 non-interest bearing advance to its president The…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: Sweet Inc. incurred a net operating loss of $489,000 in 2020. The tax rate for all years is 20%.…

A: Operating Loss Carry forward: The operating loss is considered as negative taxable income. When the…

Q: Pharoah Company, which began operations at the beginning of 2023, produces various products on a…

A: First of all we have to understand that certain deductions in Income tax is not allowed although we…

Q: Wright Co., organized on January 2, 2021, had pretax accounting income of $960,000 and taxable…

A: Balance sheet is the financial statement that reports the financial position of an entity during a…

Q: Wittco Company reports pretax GAAP income in 2020, its first year of operations, of $180,000.…

A: The deferred tax is a future tax liability or asset, This tax is two types of deferred tax liability…

Q: Sage Hill Inc. incurred a net operating loss of $440,000 in 2025. Combined income for 2023 and 2024…

A: There are financial years in which a company may incur losses instead of profits. When such a…

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Solution: Deferred tax asset = Excess accrued warranty * tax rate of 2021  = 24500*32%  = 7,840

Q: Q.Hunt Co began operations in 2025. Estimated warranty expense of $800,000 will be deductible in…

A: Future taxable amounts are those that increase the income tax payable in the future period as…

Q: iken fro Igado Company s 20 Tinancial records! Pretax accounting income- P1,500,000 Accrued warranty…

A: tax rate 2020 - 30%  2021- 32% 2022 - 34% 2023 - 35%

Q: For the year 2020, Tonkatsu Company reported income tax expense of P110,000. Income tax payable at…

A: Calculation of amount of income tax paid during the year... Income tax payable for 2019::P90,000..…

Q: Shin Corporation had a projected benefit obligation of $4,300,000 and plan assets of $4,100,000 at…

A: The company pays pensions to its employees. It's a liability for the company so the company should…

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

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

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: At the end of 2019, Lucretia McEvil Company has $180,000 of cumulative temporary differences that…

A: a.    Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes,…

Q: KreamyKeyk Company, in its first year of operations, has the following difference between the…

A: 1. Deferred tax liability to be reported in KreamyKeyk's statement of financial position at December…

Q: Sherrod, Inc., reported pretax accounting income of $100 million for 2021. The following information…

A: Compute the amounts to record income tax as follows: Result:

Q: On January 1, 2019, Lala Company received an P800,000, 8%, 2 year note from Move Corporation as…

A: Annual installment = Total amount to be collected / no. of installment = 600000/3 = P200,000

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

A: Depreciation:- Depreciation is defined as decrease in the monetary value of an asset over time due…

Q: In 2020, NB Incorporated's federal taxable income was $260,000. Compute the required installment…

A: Prior year (2020) taxable income = $260,000Thus 2020 Tax liability = 21% of $260,000 = $54,600

Q: 020 Ming Xo Inc. generated taxable income of $420,000 and incurred expenses of $490,000. What is the…

A: Remittance is defined as any money transferred from one party to another in the form of a bill,…

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

A: aCompute taxable income for 2019.

Q: At the end of 2020, its first year of operations, Tyre Recycling Inc. prepared the following…

A: GAAP income is used to determine income tax expense, which is a financial accounting record. The…

Q: i need the answer quickly

A: Accounting income is money gained after deducting all essential expenditures, such as paying off all…

Q: Oriole Co. at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Deferred tax assets and deferred tax liabilities are two types of temporary differences that arise…

Q: Tokwa't Baboy Company prepared the following reconiliation of income per books with income per tax…

A: Solution: Total provision for Income tax = Book income before taxes * Tax rate

Q: The following information is available for Bramble Corporation for 2024 (its first year of…

A: Taxable income:Taxable income is the income on which the tax is paid. Taxable includes both earned…

Q: During 2020, Marigold Co.’s first year of operations, the company reports pretax financial income at…

A: Formulas:

Q: The following information is taken from Igado Company’s 2020 financial records: Pretax accounting…

A: Deferred tax asset = Accrued warranty in excess of actual warranty expenditures X Tax rate for 2021)…

Q: completion $120,000, and completed-contract $80,000. The tax rate is 20%. Prepare Wertz's 2020…

A: Completed contract method:- Completed contract method is the method in which the companies can…

Q: On November 1, 2022, Roberts Inc. provided consulting services in exchange for a one-year, 10%…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: An entry to record Purchases and related Accounts Payable of $13,000 for merchandise purchased on…

A: The given error is not recording inventory purchase in the period of purchase but in the subsequent…

Q: The deferred tax asset to be recognized is $128000 current. $640000 noncurrent. $0. $128000…

A: A deferred tax asset  It is an asset on a company's balance sheet which is  used to reduce its…

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.