Jolens Company reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included in the other income section of the income statement was P200,000 of interest revenue from government bonds held by the entity which is non-taxable. The income statement also included depreciation expense of P500,000 for a machine that cost P3,000,000. For tax purposes, the depreciation for this machine is P600,000. The tax rate is 30% for 2019. How much is the current tax expense for 2019?

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: The books of Angry Men Company for the year ended December 31, 2023, showed pretax GAAP (book)…

A: Timing differences occur when certain transactions or events are recognized differently for…

Q: 2022, Wynn Sheet Metal had taxable income of $8,050. The amount of depreciation reported in the 2022…

A: There could be difference between accounting income and taxable income. Accounting income is income…

Q: ounting profit before tax of Lindfield Ltd for the year as $150,000, including the following items…

A: Journal entries are those entries that include daily transactions or events and are stated in the…

Q: Munoz Corp.'s books showed pretax financial income of $3,600,000 for the year ended December 31,…

A: federal income tax liability on its December 31, 2021 balance sheet = [Gain on involuntary…

Q: Ayres Services acquired an asset for $200 million in 2021. The asset is depreciated for financial…

A: Differed Tax Liability: It is created when there are temporary differences book tax and actual…

Q: Required: Determine (a) the temporary book-tax difference for the depreciable asset and (b) the…

A: Deferred Tax Liability ;-A deferred tax liability refers to an accounting concept that arises due to…

Q: amount should Munoz report as its current income tax liability on its December 31, 2022 statement of…

A: Income tax liability refers to the amount which is required to pay to the authorities of taxation.…

Q: In 2025, Kingbird Corporation had pretax financial income of $164,000 and taxable income of…

A: Lets understand the basics.Income tax is a tax levied on an individual’s income (taxable income). It…

Q: Zurich Company reports pretax financial income of $70,000 for 2020. The following items cause…

A: a. Compute taxable income and income taxes payable for 2020.Taxable income = Pretax financial income…

Q: Ayres Services acquired an asset for $64 million in 2021. The asset is depreciated for financial…

A: Deferred tax liability  is created when a tax obligation is accumulated in one financial year but…

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

A: Every business must be evidenced in at least two places, according to the logic of a journal entry…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Journal Entry: A journal entry refers to the logging of a operations into accounting items of…

Q: The accounting profit before tax of Lindfield Ltd for the year ended 30 June 2022 was $150,000,…

A: The current tax liability seems to be the expected sum of tax or incurred tax obligation on earnings…

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: herrod, Inc., reported pretax accounting income of $82 million for 2021. The following information…

A: What is Deferred tax? It is the difference between the asset and liability entries on the balance…

Q: Cullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for…

A: Deferred tax which is described as the tax difference between the current tax and any differential…

Q: Splish Company reports pretax financial income of $65,800 for 2020. The following items cause…

A: Taxable income for a corporation, we have to begin with the financial income as determined under…

Q: Ayres Services acquired an asset for $128 million in 2021. The asset is depreciated for financial…

A: Deferred tax liability or Deferred tax assets are created due to temporary differences arrived…

Q: Sunland Corporation began operations in 2020 and reported pretax financial income of $212,000 for…

A: Solution: Introduction: Deferred tax is an item on the balance sheet of the entity, for excess…

Q: Sandhill Corp. follows IFRS and began operations in 2023 and reported accounting income of $273,000…

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

Q: n 2025 Vaughn Corporation had pretax financial income of $185,000 and taxable income of $117,000.…

A: Lets understand the basics.Income tax is a tax levied on an individual’s income (taxable income). It…

Q: Bossjini Co. reported pre-tax financial income of P6,200,000 for the calendar year 2019. Included in…

A: Given: Pre tax financial income = P6,200,000 Other income which is not taxable = P200,000 Accounting…

Q: financial reporting

A: Deferred tax liability refers to tax which is due for current period but not paid.

Q: Ayres Services acquired an asset for $116 million in 2018. The asset is depreciated for financial…

A: Ayres Services is using MACRS for tax purposes and straight-line depreciation for the asset. As the…

Q: Sherrod, Incorporated, reported pretax accounting income of $92 million for 2024. The following…

A: Tax liability:Tax liability refers to the amount of tax calculated on taxable income that is due to…

Q: Use this information for parts A and B. In 2026, Goodfellas Company reported pretax GAAP income of…

A: GAAP stands for Generally Accepted Accounting Principles. It is a set of standardized accounting…

Q: Sheridan corporation reports pretax financial income of $73,500 for 2025. The following items cause…

A: Taxable income can be arrived at by subtracting the admissible expenses and by adding understated…

Q: What is the current tax expense for 2020? (Round answer to whole number)

A: pretax financial income of P6,200,000 for the calendar year 2020Income tax return reported…

Q: Required: - Prepare the journal entry to recognize Baginski’s 2025 tax expense or tax benefit. -…

A: If a company experiences a financial loss during a specific fiscal period, it has the opportunity to…

Q: Book Sherrod, Incorporated, reported pretax accounting income of $82 million for 2024. The following…

A: e. Estimated Paid Future Absences:Future compensation will be deductible on the tax return when…

Q: Ayres Services acquired an asset for $64 million in 2021. The asset is depreciated for financial…

A: Solution: - The following formulas used to calculate the cumulative temporary book tax difference…

Q: Ayres Services acquired an asset for $96 million in 2021. The asset is depreciated for financial…

A: Ayres Services Computation of Book tax differences and balance to be reported in a deferred tax…

Q: Nirvana Corporation reports pretax financial income of $260,000 for 2022. The following items cause…

A: This problem requires us to prepare journal entries to record income tax expense, income taxes…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Deferred tax assets = Net operating loss x enacted tax rate = $440,000 x 25% = $110,000

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.