At the end of the year, a deductible temporary difference of $40 million has been recognised due to the difference between the carrying amount of a liability account for estimated expenses and its tax base. Taxable income is $50 million. No temporary differences existed at the beginning of the year, and the tax rate is 35%.  Required: a. Prepare the journal entry(s) to record income taxes during the period.  b.How much will income tax expense be shown in the income statement?

Q: A company reports pretax accounting income of $30 million, but because of a single temporary…

A: Deferred tax: It implies to the tax payable or receivable in the future as a result of the…

Q: Alvis Corporation reports pretax accounting income of $320,000, but due to a single temporary…

A:

Q: 3. Consider the following accounts and determine if the account is a current liability, a long-term…

A: Current liabilities are short term obligation that to be paid within one year and liabilities having…

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A: Calculate the net income of Company Alvis’s:

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A: a. Compute income taxes payable.

Q: During the current year, Stern Company had pretax accounting income of $45 million. Stern's only…

A: Solution Taxable income is the income on which tax is paid by the tax payer to the government and…

Q: At the end of the year, the deferred tax asset account had a balance of $16 million attributable to…

A: Deferred Tax: Deferred tax is an amount i.e. computed on the basis of tax liability on the income as…

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A: Deferred tax liability is a balance sheet item that represents the amount of income tax that a…

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: xable income is only $115,000. At the beginning of the year, no temporary differences existed.…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: For 2023, its first year of operations, Corning Howell's reconciliation of pretax accounting income…

A: The temporary difference will create a deferred tax liability, since it results in less taxes being…

Q: 1. Firm B uses the calendar taxable year and the cash method of accounting. On December 31, 20x6,…

A: CASH BASED ACCOUNTING:- Cash based accounting is referred as the accounting in which the payments…

Q: For the year ended December 31, 2023, Crane Ltd. reported income before income taxes of $82,000. In…

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

Q: Alvis Corporation reports pretax accounting income of $400,000, but due to a single temporary…

A: Both parts of the question are solved.Explanation and Working files are attached below:Comment below…

Q: Complete the assets part of the pro forma balance sheet for next​ year:  ​(Round to the nearest​…

A: Particulars Amount ($) Sales Revenue 60,06,000 Less : Cost of goods sold 30,89,182 Gross…

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A: Tax rules can have a significant effect on a person's income. This is because taxes are typically…

Q: Mabuhay Company prepared the following reconciliation of income per book with income per tax return…

A: Given, Book income before tax=750,000 Taxable temporary difference=100,000 Deductible temporary…

Q: Sherrod, Inc., reported pretax accounting income of $76 million for 2021. The following information…

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A: Correct answer is A. $70 million

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A: The tax rate for : Quarter 1 = 30% Quarter 2 = 30% Quarter 3 = 25% Cumulative Income ( Quarter ) =…

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: Alvis Corporation reports pretax accounting income of $400,000, but due to a single temporary…

A:

Q: Cris Company reported the following results for the year ended December 31, 2020, its first year of…

A: If Taxable income  is greater than  income  as per books of accounts then it will result  in…

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Q: At the end of the current year, Newsmax Incorporated has $400,000 of subscriptions received in…

A: The objective of the question is to determine the type of deferred tax that would be expected to be…

Q: Bluth, Inc. reported the following financial information: Taxable income for current year $200,000…

A: Income tax expenses refer to the amount of money a business or an individual needs to set aside or…

Q: A company reports pretax accounting income of $10 million, but because of a single temporary…

A: Income tax expense:   The expenses which are related to the taxable income of the individuals and…

Q: At the end of the year, the deferred tax asset account had a balance of $8 million attributable to a…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: What is the amount of the deferred tax asset reported in the year 2 year-end balance sheet if the…

A: Deferred tax assetA deferred tax asset (DTA) is an accounting concept that represents potential…

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Q: What is the temporary difference on December 31, 2018? State the amount and then whether taxable…

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Q: Prepare the following: • Statement of Financial Position • Trial balance

A: Financial statements are the set of records of the financial transactions and position of a business…

Q: A company reports 2024 pretax accounting income of $10 million, but because of a single temporary…

A: Income Tax Accounting involves the systematic recording and reporting of a company's financial…

Q: At the end of the year, the deferred tax asset account had a balance of $12 million attributable to…

A: Deferred-tax asset = $48 million × 25%= $ 12 millionDeferred taxAsset is the asset which comes when…

Q: Pine Ltd is reviewing its deferred tax for the year. In each of the following situations prepare the…

A: Solution: 1) Depreciable asset: The carrying amount is $ 160,000 (Cost of $200,000-Accumulated…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: Alvis Corporation reports pretax accounting income of $300,000, but due to a single temporary…

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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.