DEF Co. reported taxable income of P8M in its income tax return for the 1st year of operations. The entity revealed the following temporary differences between financial income and taxable income for the year: Tax depreciation in excess of book depreciation, P800,000 Accrual for product liability claim in excess of actual claim, P1,200,000 Reported installment sales income in excess of taxable installment sales income, P2,600,000 Income tax rate, 30% Compute for the deferred tax expense for the 1st year

Q: Recording Multiple Temporary Differences, Change in Enacted Tax Rate Wittco Company reports pretax…

A: A tax liability that is listed on a company's balance sheet as owing but not yet payable taxes is…

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: Evergreen Company’s reconciliation between pretax GAAP income and taxable income follows for the…

A: Introduction:- Temporary differences imply that there would be only timing difference when it is…

Q: For the year ended 30 June 20X4, Margorie Corp generated taxable operating income of CU 1,200,000 of…

A: Deferred Tax Liability: it records the fact that the company will pay more income tax in future due…

Q: Congress had enacted a tax rate of 21 The journal entry to record the taxes for Sand Company at…

A: Deferred tax liability is created when an obligation for tax payment accumulates in one year but is…

Q: TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net…

A: The effective tax is hypothetical tax rate  = 21%  Which is to be adjusted for permanent differences

Q: The Foyer Company had an enacted income tax rate of 25%. The company ended Year 1 with a deferred…

A: Given that: Year 1 deferred income tax liability = $30,000 Year 2 deferred income tax liability =…

Q: 000,000 Temporary differences between financial income and taxable in the income tax return for the…

A: Solution 1: Deferred tax asset at year end = Accrual of product liability claim in excess of actual…

Q: Riverbed Company reports pretax financial income of $65,000 for 2020. The following items cause…

A: Hey, since there are multiple sub-parts posted, we will answer first three sub-parts.

Q: A company reports 2021 pretax accounting income of $10 million, but because of a single temporary…

A: Deferred tax liability: When Income Tax Expense account is less than the Income Tax Payable account,…

Q: Nondeductible portion of entertainment expense The applicable enacted tax rate for all periods is…

A: The concept of continuous operation is important because it affects the way financial statements are…

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

A: Deferred tax liability means liability calculated by finding difference between the comapany taxable…

Q: Calculating Deferred Tax Balance Evergreen Company's reconciliation between pretax GAAP income and…

A: There are a couple of errors in the prompt and the provided solution. Let's break down the correct…

Q: iability differ Cournal entry

A: When a tax is due in current year but it is paid in the next year it is…

Q: Pretax financial statement income for the year ended December 31, 2024 was $180 million for Wilton…

A: The objective of the question is to calculate the current portion of income tax expense for Wilton…

Q: Parker Company identifies depreciation as the only difference for future taxable amounts. In Year 1,…

A: The deferred tax asset or liability is created out of timing difference. There may be some items…

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: During 20X1, a company reported an increase in the deferred tax liability account of $47,790, a…

A: Lets understand the basics.When temporary difference arise between the book profit and taxable…

Q: For the current year ($ in millions), Centipede Corp. had $80 In pretax accounting Income. This…

A: Correct answer is A. $70 million

Q: What amount should be reported as current tax expense for the current year?   a. 2,250,000 b.…

A: 1. The current income tax would include the amount that would be payable based on taxable income.…

Q: Woodward Corporation reported pretax book income of $1,335,000. Included in the computation were…

A: Taxable income refers to the income calculated by adjusting temporary adjustments to the pre-tax…

Q: Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net…

A: Pretax book income means earning before the tax .In other words it is the income before deducting…

Q: In its 20X1 income statement, what amount should Kent report as the deferred portion of income tax…

A: The income tax expense is the charge against the net taxable income of the taxpayer. The income…

Q: Saginaw Incorporated completed its first year of operations with a pretax loss of $627,500. The tax…

A: Answer:- A deferred tax liability or deferred tax asset is created when there is a difference…

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: Unity's effective income tax rate for 2002 is 32%. The depreciation 5 points difference will reverse…

A: Solution: Amount should be reported as current portion of provision for income tax in 2002 income…

Q: f $590,000. The book–tax difference of $369,000 was due to a $205,000 favorable temporary difference…

A: Deferred income tax is a liability to the company which arises due to differences in tax laws 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…

Q: Randolph Company reported pre-tax net income from continuing operations of $800,000 and taxable…

A: Calculations of Current Tax expense and Deferred Tax Expense   Current Tax expense = Taxable income…

Q: Calculating Deferred Tax Balance Evergreen Company's reconciliation between pretax GAAP income and…

A: Deferred tax liability (DTL) is a concept in accounting that represents the tax obligations a…

Q: Hafnaoui Company reported pretax net income from continuing operations of $1,168,000 and taxable…

A: After deducting all costs, taxes, and interest from revenues that were incurred during the…

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: At December 31, DePaul Corporation had a $16 million balance in its deferred tax asset account and a…

A: Multiple Temporary DifferenceIt is very unlikely to have a single temporary difference in any…

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

A: To calculate the deferred income tax liability as of the end of Tringali Corporation's first year of…

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

A: Tringali must calculate its deferred income tax liability based on the temporary differences between…

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

A: Income tax expense refers to the amount of tax that a company expects to pay based on its taxable…

Q: Dix Company reported operating income (loss) before income tax in its first three years of…

A: The entire amount of taxes that are owed to federal, state, and local governments by people and…

Q: In its first year of operations, HD Corporation reported pretax accounting income of $820 million…

A: A deferred tax obligation is an accounting term that indicates the amount of income tax that a…

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

A: Deferred tax liability: The deferred tax liability is the excess, over received, or received in…

Q: 11. Ace Company had a pretax accounting income of P5,000,000 for its first year of operations. The…

A: Taxable income is the one which is computed after deducting all the expenses from the revenue and…

Q: Stone Company reported pre-tax book income of $700,000 in 20X1, the first year of operation. The tax…

A: DEFFERED TAX LIABILITYDeffered Tax Liability is Arise When the Financial Income is Heigher then…

Q: Required Prepare the tax-related journal entries for Year 3 to Year 7. Aberdeen Corporation believes…

A: To prepare the tax-related journal entries for Year 3 to Year 7, we need to calculate the income tax…

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.