At the beginning of 2019, PT XYZ purchased an asset for Rp600.000 with an estimated useful life of 5 years and an estimated residual value of Rp50.000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. ABC’s tax rate is 40% for 2019 and all future years. At the end of 2019, which of the following deferred tax accounts and balances is reported on ABC’s statement of financial position?

Q: Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of…

A: a.Record income tax expense, deferred income taxes, and income taxes payable for 2020.

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million…

A: Introduction:Journal entries should not be used to record routine transactions such as customer…

Q: Prance, Inc., earned pretax book net income of $800,000 in 2021. Prance acquired a depreciable asset…

A: a. Deferred tax benefit or expense: To calculate the deferred tax benefit or expense, we need to…

Q: Tor statem reporting, estimated losses on disposal of unused plant facilities of Rp1.500.000. The…

A: Deferred tax Asset or liability is arises due to temporary differences between tax records and…

Q: Ayres Services acquired an asset for $200 million in 2021. The asset is depreciated for financial…

A: Differed Tax Liability: It is created when there are temporary differences book tax and actual…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million…

A: Given information is: At the end of 2020, Payne Industries had a deferred tax asset account with a…

Q: Ayres Services acquired an asset for $48 million in 2024. The asset is depreciated for financial…

A: Deferred Tax Liability -Taxes that become due in one accounting period but are not paid in that…

Q: Required: Determine (a) the temporary book-tax difference for the depreciable asset and (b) the…

A: Deferred Tax Liability ;-A deferred tax liability refers to an accounting concept that arises due to…

Q: At the beginning of 2021, Crane Co. purchased an asset for $1200000 with an estimated useful life of…

A: The correct answer is  $978000$720000

Q: amount should Munoz report as its current income tax liability on its December 31, 2022 statement of…

A: Income tax liability refers to the amount which is required to pay to the authorities of taxation.…

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: On January 1, 2021, Sheridan, Inc. purchased a machine for $2180000 which will be depreciated…

A: Solution Concept If in case due to temporary difference The income for tax reporting is less than…

Q: Ayres Services acquired an asset for $64 million in 2021. The asset is depreciated for financial…

A: Deferred tax liability  is created when a tax obligation is accumulated in one financial year but…

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 2022 and 2023, Faulkner Manufacturing used the sum-of-the-years' - digits (SYD) method of…

A: Depreciation is used to record expenses of fixed assets over the life of the asset. It can be…

Q: depreciation exceeded book depreciation by $80,000. in 2021, Prance reports $600,000 of pretax book…

A: In the concept of taxes on Income, there are some items which are regarded as temporary differences…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $35 million…

A: INTRODUCTION: Each journal entry provides information relevant to a particular business transaction,…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $65 million…

A: Introduction: Journal entries should not be used to record routine transactions such as customer…

Q: Ayres Services acquired an asset for $80 million in 2024. The asset is depreciated for financial…

A: When a tax obligation is accrued in one fiscal year but becomes payable in a later year, a deferred…

Q: PT ABC has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

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: Ayres Services acquired an asset for $128 million in 2021. The asset is depreciated for financial…

A: Deferred tax liability or Deferred tax assets are created due to temporary differences arrived…

Q: At the beginning of 2021, Crane Co. purchased an asset for $1750000 with an estimated useful life of…

A: SOLUTION   FORMULAS- 1-DEPRECIATION AS PER STRAIGHT LINE METHOD = COST OF ASSET - SALVAGE VALUE / NO…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $100 million…

A: When there is difference in income as per accounting records and as per tax laws, then it give rise…

Q: Acme Company uses an accelerated depreciation method for income tax purposes and the straight-line…

A: Deferred taxes result from timing discrepancies between when revenues, costs, profits, or losses are…

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

A: aCompute taxable income for 2019.

Q: Ayres Services acquired an asset for $116 million in 2018. The asset is depreciated for financial…

A: Ayres Services is using MACRS for tax purposes and straight-line depreciation for the asset. As the…

Q: In 2025, Sheridan Company accrued, for financial statement reporting, estimated losses on disposal…

A: A company's financial statements will appropriately represent its future tax payments or gains…

Q: Use this information for parts A and B. In 2026, Goodfellas Company reported pretax GAAP income of…

A: GAAP stands for Generally Accepted Accounting Principles. It is a set of standardized accounting…

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.