XYZ Corporation sells clothing and accessoriesfor the modern man. The corporation had revenuesof $355,000 in the year 2021. During thenormal course of its operations it incurred thefollowing expenses.gamesInitial inventoryutilitieswages paidRentTelecommunications serviceInsurance premiumAdvertisingShoppingFinal inventoryAmount$25,00011,50035,00012,0001,3448,11250045,00015,000Instructions:Determine the company's normal, additional, andtotal tax.

The question asks us to determine the normal, additional, and total tax for XYZ Corporation. To…

Answered: Instructions: Determine the company's…

Business

Accounting

Instructions: Determine the company's normal, additional, and total tax.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

XYZ Corporation sells clothing and accessories
for the modern man. The corporation had revenues
of $355,000 in the year 2021. During the
normal course of its operations it incurred the
following expenses.
games
Initial inventory
utilities
wages paid
Rent
Telecommunications service
Insurance premium
Advertising
Shopping
Final inventory
Amount
$25,000
11,500
35,000
12,000
1,344
8,112
500
45,000
15,000
Instructions:
Determine the company's normal, additional, and
total tax.

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