MI Company has been assessed of deficiency income tax of P1,000,000, exclusive of interest and surcharge for the 2018 taxable year, the tax hability has remained und despite the lapse of June 30, 2020, the deadline for the payment stated in the notice and demand issued by the Commissiones. The payment was made by the taxpayer on February 10, 2001 Compute for the following 1. Correct amount of surcharge 2. Correct amount of deficiency interest 3. Correct amount of deliquency interest 4. Total amount due on February 10, 2021

Q: Following the net operating loss offset tax rules, the company appropriately applies the net…

A: This question presents a scenario where a company has a net operating loss in one year and a taxable…

Q: Jennings Inc. reported the following pretax income (loss) and related tax rates during the years…

A: a) Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable),…

Q: the current year, LNS corporation reported the following taxable income at the end of its first,…

A: Annualized Income Method -Self-employed taxpayers normally pay their anticipated tax in four equal…

Q: Company K operates in a jurisdiction that levies an income tax with the following rate structure:…

A: Answer:- Tax savings:- Tax saving refers to the decrease in the amount of taxes that are to be paid…

Q: SUNLAND CORPORATION HAS ONE TEMPORARY DIFFERENCE AT THE END OF 2020 THAT WILL REVERSE AND CAUSE…

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

Q: Discord Inc. income tax return shows taxes currently payable for 2020 of $85,000. The company…

A: Deferred tax asset is a non-current asset which shows an advance payment of tax and has a debit…

Q: In 2021, the company accrued wages payable $68,000 and will make the payment in 2022.   Taxable…

A: Adjusted taxable income=Taxable income-Accrued wages=$600,000-$68,000=$532,000

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: CSX Corporation reported the following in its tax footnote to its 2019 financial statements. Use…

A: ROA stands for return on assets. ROA is a ratio that computes the return on total assets. Formula =…

Q: J-Matt, Inc., had pretax accounting income of $329,000 and taxable income of $372,000 in 2021. The…

A: Accounting income is the total amount of money that a business has made using defined accounting…

Q: Wildhorse Construction Company changed from the completed-contract to the percentage-of-completion…

A: The accounting principles are the set of accounting rules and methods followed by the entities while…

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

A: Deferred tax asset are expected future tax benefits arising due to temporary differences which will…

Q: CASE IV JKL Company provided the following information to its accountant to determine the tax due…

A: Note : Adjustments while computing taxable income 1)Accounting depreciation will be added back and…

Q: axable income and applicable tax rates for C.J. Company’s first four years are shown below. For each…

A: Income Tax Payable on income after adjustment of all carry forward of losses.  Taxable income is the…

Q: For the current year, LNS corporation reported the following taxable income at the end of its first,…

A: Taxable income comprises all forms of remuneration, whether cash or services, as well as property.…

Q: The accumulated tax depreciation for machines at 30 June 2021 was $50 000. The tax rate is 30%.…

A: As per IAS 12 , income tax If  Carrying amount of Asset > tax base of asset - DTL should be…

Q: Prepare the journal entries to record income taxes for 2020. (Credit account titles are…

A: Deferred tax liability (DTL)  refers to the amount of tax raised for the present financial year but…

Q: KAY Co. reported net income for the current year 2021 at 4,180,000 before taxes. Included in the…

A: A deferred tax asset is an asset to the Company that arises if the Company has overpaid taxes or…

Q: GYV Ltd has the following deffered tax balances as at 30 June 2019 DTA        $900000 DTL.…

A: Calculation of Deferred Tax Asset: DTA = ( 900000 / 20 % )          = 4500000          = 4500000 x 5…

Q: On December 31, 2020 Delta Inc. recorded $28,000 deferred revenue on customer deposits received in…

A: As per Generally Accepted Accounting Principles, the Income and expenses are accounted on accrual…

Q: GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $900000…

A: Deferred Tax asset: Deferred tax asset is an assets that results from overpayment or advance payment…

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: . Prepare the journal entry(s) to record income taxes during the period.  b.How much will income…

A: It has been given in the question that a deductible temporary difference has been recognized of the…

Q: Compute for the taxable income NINE Company reported a pre-tax financial income of $8,584,950 for…

A: Tax is paid by the company on the taxable income earned during the relevant period by the taxpayer.…

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: 1. Firm B uses the calendar taxable year and the cash method of accounting. On December 31, 20x6,…

A: CASH BASED ACCOUNTING:- Cash based accounting is referred as the accounting in which the payments…

Q: NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021.…

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

Q: JKL Company provided the following information to its accountant to determine the tax due for the…

A: Accounting depreciation is based on the useful life of the asset and…

Q: Company K operates in a jurisdiction that levies an income tax with the following rate structure:…

A: Taxable Income before deduction -$69200 As income less than $75000 applicable tax rate id 7% Tax…

Q: For the current year, LNS corporation reported the following taxable income at the end of its first,…

A: Tax rules can have a significant effect on a person's income. This is because taxes are typically…

Q: Prepare Wilcox’s income tax journal entry at the end of 2019. 2. Prepare the lower portion of…

A: ANSWER : Tax payable = 2950 * 30% = 885 Tax expense = 3000 * 30% = 900 1) Journal entry: Dr…

Q: Current Attempt in Progress At the beginning of 2020, Sandhill Construction Company changed from the…

A: The profit-sharing plan refers to the type of retirement plan which helps an employee to be a part…

Q: Bramble Corporation has one temporary difference at the end of 2021 that will reverse and cause…

A: Taxpayers should know how much tax they owe when it is due, and how it should be paid. Tax laws and…

Q: Required: a. Company b. Company A has ATI of $77,000 and bus B has ATI of $100,500, busin

A: Deductions are expenses that are subtracted from gross income to reduce the amount of income subject…

Q: In Part 5 of Form 940, Peterson Company reported FUTA tax liabilities as follows: First quarter:…

A: FUTA Tax Provisions: In the event that the FUTA tax exceeds 500, it must be paid by the last day of…

Q: The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed pretax income of…

A: Taxable income = pretax income - excess of depreciation + excess of income  = 720000-32000+24000 =…

Q: Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid…

A: Income tax payable = Taxable income x tax rate = $75,000,000*25% = $18,750,000 Deferred tax asset =…

Q: At the end of 2019, Sentry Company reported a deferred tax liability of $12,350 based on an income…

A: Given Information: Deferred tax liability = $12,350 Income tax rate = 26% Changed income tax rate =…

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: Clal statements. Taxable income was S1,000,000 for 2022. A December 31, 2022, Miller Company had…

A: Solution: Income tax expense for the year = Current tax - Reversal of Deferred tax liability -…

Q: aramel Corp. prepared the following reconciliation of income per books with income per tax return…

A: This provision is an important part of a company's financial statements since it indicates the…

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.