PT 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?

Q: Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of…

A: a.Record income tax expense, deferred income taxes, and income taxes payable 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: sp Corporation has one temporary difference at the end of 2020 that will reverse and causedeductible…

A: Temporary difference is the difference between pretax financial income and the taxable income that…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $40 million…

A: Deferred tax assets must be assessed each period in order to determine their recoverability. When…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Bad debts also called Uncollectible accounts expense is monetary expense which is due on creditor of…

Q: Ferrero Rocher Inc.’s only temporary difference at the beginning and end of 2020 is caused by a…

A: In the context of the given question, we are required to compute the deferred tax liability on…

Q: Income Taxes Thun Company has been in operation for several years. t has both a deductible and a…

A: To compute taxable income, when income tax payable and rate of tax is given, divide the income tax…

Q: Rental income of R70 000 is received in advance. Calculate the tax base for income received in…

A: Rental payment refers to the periodic amount paid by the tenant to the owner of a property for…

Q: Cullumber Corp. has a deferred tax asset account with a balance of $70,400 at the end of 2019 due to…

A: Increase in Deferred Tax asset = Deferred Tax asset 2020 - Deferred Tax asset 2019 = ($405,000*20%)…

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: 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: 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: For the year 2020, Tonkatsu Company reported income tax expense of P110,000. Income tax payable at…

A: Calculation of amount of income tax paid during the year... Income tax payable for 2019::P90,000..…

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: 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: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $35 million…

A: INTRODUCTION: Each journal entry provides information relevant to a particular business transaction,…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $65 million…

A: Introduction: Journal entries should not be used to record routine transactions such as customer…

Q: Flint Corp. has a deferred tax asset account with a balance of $71,700 at the end of 2019 due to a…

A: Deferred tax asset in 2020 = Cumulative temporary difference for 2020 x Tax rate = $428,900 x 20% =…

Q: Estimated Tax Requirement. Zeta Corporation's taxable income for 2019 was $1.1 million, on which…

A: a. Since Zeta corporation is a large taxpayer it should pay its quarterly estimated tax payment of…

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: Grouper Corp. has a deferred tax asset account with a balance of $71,600 at the end of 2019 due to a…

A: Solution:-a The following journal entry required for record income tax payable, income tax expense…

Q: In 2020, NB Incorporated's federal taxable income was $260,000. Compute the required installment…

A: Prior year (2020) taxable income = $260,000Thus 2020 Tax liability = 21% of $260,000 = $54,600

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.

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.