ABC Company prepared the reconciliation between pretax financial income and taxable income at December 31,2019, the end of its first year of operations. Pretax financial income P 600,000 Rent collected in advance 200,000 Tax depreciation in excess of book depreciation (900,000) Taxable income (100,000) The deferred tax asset resulting from the operating loss carry forward is believed to be 100% realizable. Income tax rate is 30%. What is the income tax expense (benefit) for the year 2019?

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: Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Solution Given Pretax financial income                 =$3550000 Estimated litigation expense…

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

A: Bad debts also called Uncollectible accounts expense is monetary expense which is due on creditor of…

Q: Wynn Farms reported a net operating loss of $144,000 for financial reporting and tax purposes in…

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

Q: Sunland Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Income taxes payable = Taxable income * Income tax rate

Q: The following differences enter into the reconciliation of financial income and taxable income of…

A: Future taxable amounts are differences between accounting and taxable income that result in future…

Q: Skysong Corporation began operations in 2020 and reported pretax financial income of $244,000 for…

A: Deferred tax liability is the liability for tax which is not yet due. This will due in future tax…

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: nancial income P400,000 Estimated litigation expense 1,000,000 Installment sales (800,000)…

A: Income tax refers to the mandatory charge levied by the government over the income gained by an…

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

A: Journal Entry: A journal entry refers to the logging of a operations into accounting items of…

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: 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: aramel Corp. prepared the following reconciliation of income per books with income per tax return…

A: This provision is an important part of a company's financial statements since it indicates the…

Q: Assume NOL is allowed to carry back for two years, the amount of net loss reported on the income…

A: Net loss carried forward refers to the practice of applying the current year's losses to offset…

Q: r the year ended December 31, 2019, Nelson Co.’s income statement showed income of $425,000 before…

A: Taxable income is the portion of a person's or a company's income that is used to calculate how much…

Q: Easton Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Income Tax: - Income Tax is the direct tax charged by the government on the income earned by the…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.