d in advance---------------------------------------------150,000 Interest income on time deposit (permanent difference) ----------200,000 Depreciation deducted for income tax purposes in excess of depreciation for financial statement purposes -------------------------------------100,000 Estimated tax payment in the current year -------------------------125,000 Income tax rate------------------------------------------------------------30%

Q: Current tax credit balance 1,600,000 Deferred tax liability 5,200,000 the halance on current tax…

A: Deferred Tax Assets / Liability: When the book accounting profit is more than taxable profit then it…

Q: Current Attempt in Progress For the year ended December 31, 2023, Blue Ltd. reported income before…

A: Taxable income is the income earned on which the taxes are levied. This income includes all the…

Q: Inc. issued ar а Cerest revenu

A: Answer : Interest revenue recognized in the following year = $89,300 * 8% * 91/360 Interest revenue…

Q: Pampie Company reported in the income statement for the current year pretax income of Php400,000.…

A: Tax expense is the amount of tax that the entity has paid on its taxable income.

Q: On June 8, Alton Co. issued an $77,100, 7%, 120-day note payable to Seller Co. Assume that the…

A: Interest:   An interest is the cost of the funds loaned to the business by any lender.

Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…

A: Interest income from depository accounts is exempt from tax. hence it is a permanent difference. He…

Q: Discord Inc. income tax return shows taxes currently payable for 2020 of $85,000. The company…

A: Deferred tax asset is a non-current asset which shows an advance payment of tax and has a debit…

Q: if a property transaction is scheduled to close on May 14. The purchase agreement states that the…

A: Variables in the question:Transaction closing date=May 14Beginning date of year=January 1Total tax…

Q: Rental income of R70 000 is received in advance. Calculate the tax base for income received in…

A: Rental payment refers to the periodic amount paid by the tenant to the owner of a property for…

Q: A company makes the following journal entry for 2021: Dr. Income Tax Expense…

A: Income tax expense = Income tax payable + Deferred tax liability created during the year - Deferred…

Q: DALLAS Corp. is preparing the December 31, 2020, year-end financial statements. Following are…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE  $ 6,750 Credit against…

A: FUTA stands for Federal Unemployment Tax Act. This tax is imposed on employers whose employees leave…

Q: Under the modified accrual basis of accounting, property taxes are recorded as deferred inflows if…

A: The modified accrual basis of accounting is a method of accounting used primarily in governmental…

Q: On July 8, Jones Inc. issued an $63,400, 8%, 120-day note payable to Miller Company. Assume that the…

A: To compute the interest expense recognized in current fiscal year: Principal = $63,400 Interest rate…

Q: What is the effective income tax rate for 2021?

A: Effective Tax Rate can be defined as the average rate at which tax is paid by the individual or a…

Q: Brush Company has the following income before income tax and estimated effective annual income tax…

A: Income Statement:- It is a statement where expenses and revenue incurred during the period recorded.…

Q: during the year, plum company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA…

A: FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) are payroll taxes that…

Q: On June 1, Davis Inc. issued an $68,700, 8%, 120-day note payable to Garcia Company Assume that the…

A: Solution We are provided with the following information Interest rate = 8% Amount of note payable =…

Q: With the following data, compute the NET FUTA Tax. Gross FUTA Tax DUE $6,750 Credit against FUTA…

A: Formula: Net FUTA tax = Gross FUTA tax due - Credit against FUTA

Q: The payroll register of Sara Company indicates $5,850 of social security tax withheld and $1,600 of…

A: Introduction: Payroll tax expense account is indeed the holding account used to keep track of the…

Q: T&T restaurant, non-VAT registered, had gross receipts during the year which amount to P2,500,000.…

A: As per BIR, applicable VAT tax rate is 12% but the for the non registeered persion whose sales do…

Q: XYZ Pawnshop Corp. reported the following information in preparation of its quarterly percentage tax…

A: Pawnshops generate money by lending money, reselling merchandise, and providing ancillary services…

Q: Mackenzie Corp, is preparing the December 31, 2020, year-end financial statements. Following are…

A: Adjusting Entries :— It is the journal entry made at the ending the accounting period to adjust the…

Q: Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are…

A: Adjusting Entries :— It is the journal entry made at the end of the accounting period to adjust the…

Q: STARS Company reported net income for the current year 2021 before taxes is #4,288,000. The…

A: A deferred tax asset is an item in a company's balance sheet that reduces its taxable income in…

Q: 2018 2019 2020 2021 (a) 2018 $131.000 97,000 (306,000) 223.000 The tax rates listed were all enacted…

A: Deffered Tax Assets :— A deferred tax asset is an asset to the Company that usually arises when the…

Q: Required: 1. Prepare any required adjusting entries at December 31, 2023, for each of the above.…

A: Accounting entries known as "adjusting entries" are made to update account balances and guarantee…

Q: Question 3 At the end of the year, a deductible temporary difference of $40 million has been…

A: When there is a difference in amounts of tax base and accounting base of assets and liabilities it…

Q: A-One Mechanics Limited files GST returns monthly, and the GST rate is 5%. The figures in the…

A: Input GST : Input GST is calculated on purchases made and expenses incurred by the company. GST is…

Q: On June 1, Davis Inc. issued an $64,900, 7%, 120-day note payable to Garcia Company Assume that the…

A: Interest to be received is calculated by multiplying the principal with rate of interest and time .…

Q: At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there…

A: Considering cash accounting system tax is payable only on actual profit realise cash. On timing…

Q: The accounting profit before tax of Topsy Limited for the year ended 30 June 2021 is $1,600,000.…

A: Summary of the information provided in the question : current year accounting profit before taxes =…

Q: Rangee Rover Inc. had taxable income of $218,500 for the year. The GAAP basis of accounts receivable…

A: Deffered tax assets or liabilities arises when there is any temporary difference between accounting…

Q: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…

A: taxable income of P1,658,000

Q: On July 8, Jones Inc. issued an $69,300, 6%, 120-day note payable to Miller Company. Assume that the…

A: Notes payable is a negotiable instrument signed by the promisor who agreed to pay a certain amount…

Q: State the accounting entries required if a business made sales on credit of $10,000, on which it…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

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.