Lax Company at the end of 2019, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income P900,000; Estimated litigation expense P1,200,000; Extra depreciation for taxes (P1,800,000); Taxable income P400,000. The estimated litigation expense of P1,200,000 will be deductible in 2020 when it is expected to be paid. Use of the depreciable asset will result in taxable amounts of P600,000 in each of the next three years. The income tax rate is 30% for all years. Income tax payable is A. P0 B. P120,000

Q: Lax Company at the end of 2019, its first year of operations, prepared a reconciliation between…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: vision for warranty Deposits received in advance Carrying amount $150 000

A: According to TCJA the corporate tax for the year 2020 is consider to be 21% for determine deferred…

Q: Pretax financial income $930000 Estimated litigation expense 2550000 Installment sales (2040000)…

A: Deferred tax liability means taxable amount is less then income as per financial income. And tax…

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Solution: Deferred tax asset = Excess accrued warranty * tax rate of 2021  = 24500*32%  = 7,840

Q: At the end of 2019, Vaughn Company has $181,600 of cumulative temporary differences that will result…

A: Year Amount Tax rate Amount 2020 $60,500 30% 18,150.00 2021 50,200 30% 15,060.00 2022…

Q: Q.Hunt Co began operations in 2025. Estimated warranty expense of $800,000 will be deductible in…

A: Future taxable amounts are those that increase the income tax payable in the future period as…

Q: Sweet and Sour Company had pretax accounting income of P2,400,000 during 2020. Sweet and Sour…

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

Q: Scarlet Company had pretax accounting income of P2,400,000 during 2020. Scarlet Company’s temporary…

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

Q: During 2019, Holmes Co. reports pretax financial income at $762,300 and a taxable income of…

A: Pretax financial income- It is that income of the entity which it earns after deducting all the…

Q: loss carryovers or carrybacks). -,000) ▪,000) 6,750 2,000 ,500) 0,000 1 taxable income after the NOL…

A: Book tax refers to the concept which determines the amount of the taxes reflected on the financial…

Q: At the end of 2019, Riverbed Company has $181,900 of cumulative temporary differences that will…

A: The income tax expense is determined by applying the relevant tax rates to the taxable income, which…

Q: Caramel Co. at the end of 2022, its first year of operations, prepared a reconciliation between…

A: when there is taxable temporary difference arise between accounting profit and tax profit then…

Q: WCC Corporation has a $100,000 net operating loss carryover into 2021. Assume that it reported…

A: Losses under the heading "Profits and profits of business or profession" can only be carried forward…

Q: At the end of 2019, Lucretia McEvil Company has $180,000 of cumulative temporary differences that…

A: a.    Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes,…

Q: WCC Corporation has a $105,000 net operating loss carryover into 2021. Assume that it reported…

A: Introduction:- The following formula used to calculate as follows:- Taxable income (After net…

Q: At the end of 2019, its first year of operations, Beattie Company reported taxable income of $39,000…

A: Beatie's income tax journal entry is as follows: Date Account title and explanation Debit…

Q: KreamyKeyk Company, in its first year of operations, has the following difference between the…

A: 1. Deferred tax liability to be reported in KreamyKeyk's statement of financial position at December…

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: ole Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

A: Depreciation:- Depreciation is defined as decrease in the monetary value of an asset over time due…

Q: None

A: Income Tax Expense:Taxable income in 2019: $470,000Tax rate for 2019: 34%Income Tax Expense =…

Q: The pretax financial income of Wew Corporation differs from its taxable income throughout each of…

A: The following calculations are done for Wew Corporation.

Q: Analysis of the assets and liabilities of Someday Corporation on December 31, 2019 disclosed assets…

A: Solution: Total deferred tax liability = Reversible difference * respective tax rates

Q: Acme Company uses an accelerated depreciation method for income tax purposes and the straight-line…

A: Deferred taxes result from timing discrepancies between when revenues, costs, profits, or losses are…

Q: The following information is available for Wenger Corporation for 2019 (its first year of…

A: aCompute taxable income for 2019.

Q: Danforth Inc. has some financial transactions occurring in 2021 that result in future taxable…

A: As per the revenue recognition accounting principle, revenues shall be recognized only when the…

Q: At the beginning of 2019, Norris Company l1ad a deferred tax liability of $6,400, because of the use…

A: Comment-Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: At the end of 2020, its first year of operations, Tyre Recycling Inc. prepared the following…

A: GAAP income is used to determine income tax expense, which is a financial accounting record. The…

Q: Oriole Co. at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Deferred tax assets and deferred tax liabilities are two types of temporary differences that arise…

Q: On January 1 2020, Entity A purchased property insurance from a certain insurance company. The cost…

A: Generally for business there is a time period which may be month , quarter , six…

Q: Subject  :- Account    At the end of 2024, its first year of operations, Blossom Company prepared…

A: The deferred tax assets can be defined as the balance sheet item that is supposed to decrease the…

Q: vel Submission) The following information is available for Martinez Corporation for 2019 (its first…

A: When the tax paid for the year is less than tax liability as per the records, this means additional…

Q: he income tax rate is 30% for all years. Income tax payable is?

A: Income Tax is a form of indirect tax. It is the tax payable on the amount of income earned during a…

Q: Crane Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax…

A: Income Tax: - Income Tax is the direct tax charged by the government on the income earned by the…

Q: The deferred tax asset to be recognized is $128000 current. $640000 noncurrent. $0. $128000…

A: A deferred tax asset  It is an asset on a company's balance sheet which is  used to reduce its…

Q: Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between…

A: Answer:- Deferred tax asset:- On the balance sheet of a business, a  deferred tax asset is a thing…

Q: rating loss deduction). (Leave no answer blank. Enter zero if applicable.)…

A: Every business is formed to earn profits. There may be some times that the business may incur a…

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.