Ferrero Rocher Inc.’s only temporary difference at the beginning and end of 2020 is caused by a  P3,000,000 total collectible amount for tax purposes for an installment sale of a plant asset, and the related  receivable (only one-half of which is classified as a current asset) is due in equal installments in 2021 and  2022. The related deferred tax liability at the beginning of the year is P1,200,000. In the third quarter of  2020, a new tax rate of 34% is enacted into law and is scheduled to become effective for 2021. Taxable  income for 2020 is P5,000,000, and taxable income is expected in all future years. How much is the  deferred tax liability on December 31, 2020?

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…

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Q: At December 31, 2019, the Blue Agave Company had a current deferred tax asset of $60,000, arising…

A: What is meant by Journal entries? It is the first step to record the financial transactions in the…

Q: Sherrod, Incorporated, reported pretax accounting income of $96 million for 2024. The following…

A: Tax liability and incomeThe amount of money paid by the government on the income or gains earned by…

Q: Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes…

A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…

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A: The objective of the question is to calculate the deferred tax asset or liability for Blue Spruce…

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

A: Solution 1: Payne Industries Journal Entries Event Particulars Debit (In Million) Credit (In…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $40 million…

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A: Income tax expense represents the amount of income tax that a company or individual recognizes and…

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A: Deferred Tax plus and postponed liabilities. Postponed liabilities (DTL) or postponed Tax plus (DTA)…

Q: Holmes Corporation has a cumulative temporary difference related to depreciation of $ 580,000 at…

A: When the tax paid (as per the tax code) is less than the tax calculated in the income statement (as…

Q: Bronson Industries reported a deferred tax liability of $13.5 million for the year ended December…

A: The deferred tax obligation refers to the tax amount on a certain taxable amount that has not yet…

Q: In its 2021 income statement, Crane Corp. reported depreciation of $3600000 and interest revenue on…

A: Deferred tax liability is the amount of liability that arises on account of differences in items as…

Q: Sheffield, Inc. has a deferred tax asset account with a balance of $255,600 at the end of 2024 due…

A: Deferred tax refers to the difference in tax due to inconsistency in the company's income statement…

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: (a) Determine the amount reported as a deferred tax liability at the end of 2024. Deferred tax…

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Q: Bramble Corp. has a deferred tax asset account with a balance of $68,600 at the end of 2024 due to a…

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A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: 4, the temporary difference is $352 million. Payne has no other temporary differences and no…

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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: 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: Nash Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,690,000…

A: 1) Present tax rate 40%  = 1476000 / 3690000           Deffered tax liability =  ($3,690,000 x…

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: ary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%,…

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Q: On December 31, 2020, Knight Industries had a deferred tax asset account with a balance of $65…

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A: Solution:-a The following journal entry required for record income tax payable, income tax expense…

Q: years. ) Record income tax expense, deferred income taxes, and income taxes payable dented when…

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Q: Sandhill Inc.'s only temporary difference at the beginning and end of 2024 is caused by a $3.63…

A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per 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.