On December 31, 2019, an entity reported a deferred tax liability of P600,000 and a deferred tax asset of P150.000 On December 31, 2020, the deferred tax liability is P900,000 and the deferred tax asset is zero. What is the deferred tax expense for 2020?
Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million…
A: Introduction:Journal entries should not be used to record routine transactions such as customer…
Q: Cullumber Construction Company changed from the completed-contract to the percentage-of-completion…
A: The objective of the question is to calculate the net income for the year 2021 and to determine the…
Q: Blue Spruce Corporation has a taxable temporary difference related to net book value versus UCC of…
A: The objective of the question is to calculate the deferred tax asset or liability for Blue Spruce…
Q: Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of…
A: Part 1 :
Q: The following facts relate to Crane Corporation. 1. Deferred tax liability, January 1, 2025,…
A: The objective of the question is to calculate the pretax financial income for Crane Corporation for…
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: The following facts relate to Whispering Corporation. Deferred tax liability, January 1, 2020,…
A: Taxable Income Taxable Income is defined as the income on which tax rates are calculated as per the…
Q: Questions 20 to 23 are based on the following information: On January 1, 2016, Telespace Inc. grants…
A: calculation of deferred tax expenses are as follows
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: A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this…
A: As per IAS 12 Income taxes, When carrying amount of liability as per books(financial reporting…
Q: ht Bay Resorts had the following deferred income tax items: Deferred tax asset of $54…
A: Answer: Deferred tax liability of $120 million related to a non current asset…
Q: At December 31, 2017, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31,…
A: Workings: Given values: Deferred tax liability on December 31, 2017 is $ 25000
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: The following facts relate to Duncan Corporation. 1. Deferred tax liability, January 1, 2020,…
A:
Q: The following facts relate to Kingbird Corporation. 1. Deferred tax liability, January 1, 2020,…
A: Income tax is the direct tax . It is a tax charged on the annual income earned by the individual.…
Q: Feagler Company's current income taxes payable related to its taxable income for 2020 is $460,000.…
A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…
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: At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and…
A: Deferred taxes assets-Deferred tax assets is a business tax credit for future taxes, and a deferred…
Q: What is the total deferred tax liability at December 31, 20x6? 2. What is the total deferred tax…
A: Step 1 Deferred tax is the tax which is the arises due to difference in between the accounting…
Q: Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of…
A: Pretax financial income is the amount of a company makes before taxes are factored in. It's…
Q: Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of…
A: Note 1: Deferred Tax Asset - Warranty Expense Deferred Tax Asset = Warranty Tax Expense after Tax…
Q: In 2022, Dunder Mifflin Inc. had one temporary difference of $398 that resulted in a deferred tax…
A: Temporary difference means the difference between Accounting Income and taxable income which is…
Q: The following facts relate to Cheyenne Corporation. 1. Deferred tax liability, January 1, 2020,…
A: Deferred Tax Asset = future deductible amounts x 20% = $40,950 x 20% = $8,190 Deferred Tax Liability…
Q: At December 31, 2025, Whispering Inc. had a deferred tax asset of $31,600. At December 31, 2026, the…
A: When there is taxable temporary difference arise between accounting profit and tax profit then…
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: 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: A liability in 2021 is reported for financial reporting purposes but not for tax purposes. When this…
A: Deferred tax is the amount of future tax payable due to difference in the taxable income of current…
Q: At December 31, 2020, Appaloosa Corporation had a deferred tax liability of $25,000. At December 31,…
A: Income Tax:Income earned by a taxable person during a financial year is subject to income tax, and…
Q: Thiel Company reports the following deferred tax items at the end of 2019: Deferred Tax Item #…
A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…
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: At December 31, 2017, Percheron Inc. had a deferred tax asset of $30,000. At December 31, 2018, the…
A: The tax expense to be recognized in any year is the sum total of current and deferred tax expense.…
Q: Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of…
A: Step 1 Tax liability is the amount of money in the form of tax debt you owe to tax authorities.
Q: Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of…
A:
Q: The following facts relate to Sage Corporation. 1. 2. 3. 4. 5. 6. 7. 8. Deferred tax liability,…
A: Journal Entry - It is record of every business transaction in day to day life whether it is economic…
Q: 3. Scottish Corporation reported $1,150,000 of taxable income for the 2020 tax year on its Form…
A:
Q: The following facts relate to Crane Corporation. Deferred tax liability, January 1, 2025, $30,600.…
A: A Deferred Tax Asset (DTA) represents potential future tax benefits that a company can utilize to…
Q: In 2021, Dunder Mifflin's warranty deduction for tax purposes exceeded its warranty expense for book…
A: Income Tax Expense = $42800 x 27% = $11556.00 Income Tax Payable = ($42800 - $654) x 27% =…
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: In Year 1of its operations, Reliable Company has revenues of $600,000 and expenses of $400,000. Of…
A: Revenue. $600000 less : expenses ($400000 - $70000…
Q: Shwonson Industries reported a deferred tax asset of $7.75 million for the year ended December 31,…
A: Following is the answer to the given questions
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: Force Corporation has one temporary difference at the end of 2020 that will reverse and cause…
A: A journal entry is the first step—and an essential function—of the accounting process. Journal…
On December 31, 2019, an entity reported a
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Shwonson Industries reported a deferred tax asset of $5.50 million for the year ended December 31, 2020, related to a temporary difference of $22 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020-2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $32 million. Required: 1. Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021. 2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021. (If no entry is required for a transaction/event, select "No journal entry…At December 31, 2022, Ivanhoe Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $32,700 on its balance sheet. At December 31, 2023, Ivanhoe has five temporary differences. An analysis reveals the following: Future (Taxable) Deductible Amounts emporary Difference oks; deductible when funded for tax purposes 2024 2025 2026 $32,700 $22,700 $10,000 earned for accounting purposes and when received for tax purposes 76,000 accounting purposes and recognized for tax purposes when paid alment sales when sold for book purposes, and as collected for tax purposes 24,000 (36,300) (36,300) (36,300) iting purposes, and CCA for tax purposes (90,300) (50,000) (40,000) $6,100 ($63,600) ($66,300) The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1, 2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Ivanhoe follows IFRS. (a) Indicate…Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 2019–2022. Pretax Income (loss) Tax Rate 2019 $80,000 40 % 2020 (180,000) 40 % 2021 230,000 20 % 2022 100,000 20 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Jennings began business. The tax rates from 2019–2022 were enacted in 2019. Prepare the journal entries for the years 2020–2022 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryforward. Assume that Jennings expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year.
- At the end of 2021, a company has a deferred tax asset with a balance of $480,000.The company has a valuation allowance account related to the deferred tax asset. The valuation account has a balance of $205,000 at the beginning of 2021. If it is more likely than not that all of the deferred tax asset will be realized, then (enter the number that represents the correct answer): income tax expense will be debited by $205,000. income tax expense will be credited by $205,000. deferred tax asset will be debited by $275,000 the valuation account will be credited by $205,000.The following facts relate to Sandhill Corporation. 1. 2. 3. 4. 5. 6. 7. 8. (a) Deferred tax liability, January 1, 2025, $28,400. Deferred tax asset, January 1, 2025, $0. Taxable income for 2025, $114,950. Pretax financial income for 2025, $221,000. Cumulative temporary difference at December 31, 2025, giving rise to future taxable amounts, $290,400. Cumulative temporary difference at December 31, 2025, giving rise to future deductible amounts, $42,350. Tax rate for all years, 20%. The company is expected to operate profitably in the future. Compute income taxes payable for 2025. Prepare the journal entry to record income tax expense, deferred income taxes and income tax payable for 2025PT BCD has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a single cumulative temporary difference of Rp750.000. At the end of 2019, this same temporary difference has increased to a cumulative amount of Rp1.000.000. Taxable income for 2019 is Rp1.700.000. The tax rate is 40% for all years. Assuming it’s probable that 70% of the deferred tax asset will be realized, what amount will be reported on ABC’s statement of financial position for the deferred tax asset at December 31, 2019?
- Shwonson Industries reported a deferred tax asset of $9.75 million for the year ended December 31, 2020, related to a temporary difference of $39 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $49 million. Required:1. Prepare the appropriate journal entry to record Shwonson’s income tax expense in 2021.2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson’s 2021 net income?Youngman Corporation has temporary differences at December 31, 2020, that result in the following deferred taxes. Deferred tax asset $24,000 Deferred tax liability 69,000 Indicate how these balances would be presented in Youngman's December 31, 2020, statement of financial position.At December 31, 2025, Suffolk Corporation had an estimated warranty liability of $105,000 for accounting purposes and $0 for tax purposes. (The warranty costs are not deductible until paid.) The effective tax rate is 20%. Compute the amount Suffolk should report as a deferred tax asset at December 31, 2025.
- Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of $800,000. In addition, Munoz reported the following differences between its pretax financial income and taxable income:• Interest income of $80,000 was received during 2019 from an investment in municipal bonds. This income is exempt for tax purposes.• Rent income of $40,000 was collected in 2018 and included for tax purposes during that year. For financial statement purposes, it will be reported as earned equally in 2019 and 2020.• An asset with a 5-year life was purchased during 2019; straight-line depreciation for book purposes was $40,000. MACRS depreciation expense for 2019 was $100,000.• Warranty expense of $20,000 was recognized on the 2019 income statement, while $5,000 was recognized for tax purposes. (Assume a 1-year warranty contract.)The balance of the Deferred Tax Asset account (debit) at January 1, 2019, was $16,000 as a result of the rent income temporary difference. The tax…Sheridan Company reported the following results for the year ended December 31, 2020, its first year of operations: Income (per books before income taxes) $3343000 Taxable income 4466000 The disparity between book income and taxable income is attributable to a temporary difference, which will reverse in 2021. What should Sheridan record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 35% in 2020 and 30% in 2021? O $393050 deferred tax liability $336900 deferred tax liability $393050 deferred tax asset $336900 deferred tax assetSunland Company reports pretax financial income of $72,600 for 2025. The following items cause taxable income to be different than pretax financial income. 2. Depreciation on the tax return is greater than depreciation on the income statement by $17,200. Rent collected on the tax return is greater than rent recognized on the income-statement by $20,300. 3. Fines for pollution appear as an expense of $9,900 on the income statement. Sunland's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025. (a) X Your answer is incorrect. Compute taxable income and income taxes payable for 2025. Taxable income $ 92500 Income taxes payable $ 27750
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)