On Jan. 1, 2020, Heat Company reported a deferred tax liability of Php1,000,000 and a deferred tax asset of Php400,000. On Dec. 31, 2020, the entity reported a deferred tax liability of Php1,500,000 and a deferred tax asset of zero.

Q: Describe the Changes in Enacted Tax Laws or Rates.

A: The enacted tax rates are used. to calculate income tax amounts. Enacted or substantively enacted…

Q: t is the change during the year in an entity's deferred tax liability and o O A. Current tax expense…

A: Solution: "Deferred tax expense" is the change during the year in an entity's deferred tax asset and…

Q: 6. Contributions to an IPA may be made by the due date of the individual's income tax return,…

A: IRA stands for "Individual Retirement Account". It is a type of investment account that allows…

Q: (Explain Future Taxable and Deductible Amounts, How Carryback and Carryforward Affects Deferred…

A: (a) In case of Future taxable amount future years taxable amount increases and lead to recording of…

Q: Describe the types of temporary differences that cause deferred tax liabilities and determine the…

A: Deferred tax liabilities It is a type of liability that arises due to the difference between the tax…

Q: what are the advantages and disadvantages of the payroll tax deferral?

A: Highlights of the payroll tax deferral scheme:- It applies to all those employees whose before tax…

Q: When determining the amount of cash paid for income taxes, what would be indicated by an increase in…

A: Defferred income tax liability indicates that the because of temporary difference between accounting…

Q: current and deferred tax expense

A: Option A is correct because deferred tax expense is recognized if there is a change in the deferred…

Q: FUTA TAX MUST BE DEPOSITED WHEN THE CUMULATIVE QUARTERLY TAX LIABILITY EXCEEDS?

A: FUTA (Federal unemployment tax) Tax is required to be paid by an employer for the first $7000 wages…

Q: who are benefits or do not benefit from payroll tax deferral?

A:

Q: Which of the following tax accounting methods least likely defers payment of taxes?     Spread Out…

A: Spready Out method: Under this method revenue is recognised over a period of time. Lets make an…

Q: a) Explain what a temporary difference is and why it attracts deferred tax

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Why do deferred taxes arise

A: The deferred taxes usually arise when there is balance of over or advance payment of taxes to an…

Q: Briefly explain each filing status. How does filing status affect who must fileincome taxes? How…

A: Filing Statuses and Their Impact on Tax Filing and DeductionsFiling status determines several…

Q: How does a company determine the amount of income tax expense to report in an interim period?

A: Income tax: Income tax refers to the direct tax levied on individual person or business and…

Q: What is meant by “tax allocation within a period”? What is the justification for such practice?

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: The marginal tax rate is equal to Question 11 options:the change in the tax payment divided by the…

A: Marginal tax is the tax which you pay on an additional amount of incomes. This marginal tax is very…

Q: What makes the refund of state taxes taxable on the federal tax return? a. moving to Texas before…

A: When filing your federal tax return, it is important to understand whether or not any state tax…

Q: Cash basis taxpayers deduct rental expenses that apply to a future tax year in the year the expenses…

A: Cash basis taxpayer means the tax payer who report expense and revenue on cash basis and not on…

Q: When is a receivable recognized for property tax assessments? When is the revenue recognized?

A: Property tax assessment is the process of evaluating the property for tax purposes. Then an…

Q: How do you calculate withholding taxes?

A: Federal income tax withholding:  The amounts which the employer withheld from employees’ gross pay…

Q: Explain the Revenue Related to Deferred Tax Liabilities.

A: Deferred tax liability is explicitly made when an expense commitment gathered in one budgetary year…

Q: How are deferred tax assets and deferred tax liabilitiesreported on the balance sheet?

A:

Q: Deferred tax liability

A: Correct Answer is :- C Deferred tax Liability.

Q: Selected current year-end financial statements of Cabot Corporation follow. (All sales were on…

A: Average Assets :— It is calculated by dividing sum of beginning balance of total assets and ending…

Q: Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on…

A: Taxation is the process by which governments collect money from individuals and businesses to fund…

Q: It is a kind of withholding tax which is prescribed on certain income payments and is creditable…

A: The question is related to the taxation.

Q: What are FUTA and SUTA taxes? Is there any possible reduction in the FUTA tax rate? If so, what is…

A: Introduction: Employer payroll taxes are paid by the employer from its own funds on the basis of…

Q: Explain the difference between tax reliefs and tax credits

A: Taxes are mandatory payments placed on individuals or businesses by a government agency, whether…

Q: What problems might create from payroll tax deferral?

A: Highlights of the payroll tax deferral scheme:- It applies to all those employees whose before tax…

Q: What is the tax base for each of the following taxes? Income Tax GST FBT

A: Taxes are the amount of dues that is being payable to the government on account of income earned,…

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.