Piper Corp. had a taxable net income of P5,500,000 and total assets of P100 million. It had the following data on expenses for the taxable year. Salary expense, P1,200,000 Rent expense, P240,000 Advertising expense, P60,000 Depreciation expense, P50,000 Interest expense, P600,000 Interest income, net of 20% final tax, P240,000 How much is the regular itemized deductions?

Q: ABC's pre-tax financial income is P1,800,000. Current income tax rate is 30%. In ABC Company's books…

A: Taxable income = Pre-tax financial income + Fines paid for late payment of taxes + Impairment of…

Q: Westwind Corporation reports the following results for the current year: Gross profit on sales…

A: Profits accumulated from the sale of any capital asset are referred to as capital gains. Such…

Q: During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of…

A: The correct answer is A. $33,600Explanation:Since there is no provided corporate tax rate, we will…

Q: For the year ended 30 June 20X4, Margorie Corp generated taxable operating income of CU 1,200,000 of…

A: Deferred Tax Liability: it records the fact that the company will pay more income tax in future due…

Q: reported the following: Earnings (loss) Depreciation (assets have a cost of $360,000) CCA…

A: Accounting Income:Accounting income, also known as book income or financial income, is used for…

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: Pampie Company reported in the income statement for the current year pretax income of Php400,000.…

A: Tax expense is the amount of tax that the entity has paid on its taxable income.

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

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

Q: (EBIT).

A: Tax is calculated by subtracting EBIT minus the interest expense & multiplied by the respective…

Q: TarHeel Corporation reported pretax book income of $1,034,000. During the current year, the net…

A: The effective tax is hypothetical tax rate  = 21%  Which is to be adjusted for permanent differences

Q: For the year ended 30 June 2022, Chilli Ltd had a taxable profit of $460 000. The following…

A: The journal entry for the difference in the deferred tax assets over year are debited, whereas,…

Q: The King Corporation has total annual revenue of $800,000; expenses other thandeprecation of…

A: Solution: Pretax income = Annual revenue - Expenses other than depreciation - Depreciation expense…

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: Randal Corporation reports the following results for the current​ year: Gross profits on sales…

A: Regular dividends are declared by a firm and are paid out on a planned basis, such as quarterly or…

Q: The reported pretax financial income of Luciano Company is P1,800,000 and current income tax rate is…

A: Financial Income 1800000

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Deferred tax liability means liability calculated by finding difference between the comapany taxable…

Q: Determine the taxable income for a company that had a gross income of $41 million, earnings before…

A: Variables in the question:Gross income=$41 millionEBIT=$25 millionDepreciation=$9.2 million

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Lets understand the basics.When any temporary difference arise between the taxable income and…

Q: Li Corporation reported pretax book income of $600,000. Tax depreciation exceeded book depreciation…

A: All of an individual's income, excluding certain taxes like child support and inheritance, is their…

Q: come tax.   Please consider the following information: Rent income received in advance P150,000…

A: Solution: The permanent difference "Interest income on time deposit  200,000".

Q: Grand Corporation reported pretax book income of $639,000. Tax depreciation exceeded b lepreciation…

A: The following computations are done as per the information provided.

Q: For the first year of operations, Fidelity Engineering reported pretax accounting income of…

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

Q: JAY Co. reported net income for the current year 2021 at ₱2,395,000 before taxes. Included in the…

A: The income tax is the tax the government imposes on business income and individuals. It is a source…

Q: Thornton, Inc., had taxable income of $129632 for the year. The company's marginal tax rate was 34…

A: A company’s tax due is calculated on the basis of the average tax rate and not the marginal tax…

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: Pretax financial statement income for the year ended December 31, 2024 was $180 million for Wilton…

A: The objective of the question is to calculate the current portion of income tax expense for Wilton…

Q: Grand Corporation reported pretax book income of $615,000. Tax depreciation exceeded book…

A: Income tax refers to the amount charged by the government to individuals and organizations on the…

Q: Grand Corporation reported pretax book income of $639,000. Tax depreciation exceede lepreciation by…

A: The following computations are done as per the information provided.

Q: For the current year ($ in millions), Centipede Corp. had $80 In pretax accounting Income. This…

A: Correct answer is A. $70 million

Q: The following data are available for X Corp, a Domestic Corporation, with Total Assets of P40…

A: In the context of the given question, we are required to compute the income tax payable in Quarter…

Q: Li Corporation reported pretax book income of $690,000. Tax depreciation exceeded book depreciation…

A: The deferred tax liability is created when the taxes to be paid as per income tax are greater than…

Q: Marlin Corporation reported pretax book income of $1,000,000. During the current year, the net…

A: Pretax book income means earning before the tax .In other words it is the income before deducting…

Q: EFG & Co. started its business at the beginning of the current year. By end of first year…

A: Deferred tax liability = future taxable amount x tax rate = P400,000 x 30% = P120,000

Q: In its 20X1 income statement, what amount should Kent report as the deferred portion of income tax…

A: The income tax expense is the charge against the net taxable income of the taxpayer. The income…

Q: Grand Corporation reported pretax book income of $627.500. Tax depreciation exceeded book…

A: Income tax refers to the amount charged by the government to individuals and organizations on the…

Q: Li Corporation reported pretax book income of $670,000. Tax depreciation exceeded book depreciation…

A: The deferred tax liability is created when the taxes to be paid as per income tax are greater than…

Q: NS Corporation reports bo

A: Which Types of Income and Expenses Are Treated Differently in Calculating Book Income and…

Q: Grand Corporation reported pretax book income of $639,000. Tax depreciation exceeded book…

A: The following computations are done as per the information provided.

Q: JAY Co. reported net income for the current year 2021 at ₱2,395,000 before taxes. Included in the…

A: When a company's taxable income is less than its accounting income, a liability known as a deferred…

Q: 1 Nina Corporation, with the total assets of P15,000,000 (MSME), shows the following data duri Sales…

A: Itemized deductions are those deductions which can be deducted from the taxable income and help in…

Q: A company generates $500,000 of gross income during its tax year and incurs operating expenses of…

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

Q: o. computed a pre-tax financial income of 15,000,000 for the year ended Dec. 31, 201X. In preparing…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: Enid paid the gross payroll of P15,000. The deductions are: withholding tax, P1,000 and SSS, P500.…

A: Employers pay the net payroll amount to the employees that are calculated by deducting withholding…

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.