S Corp. received cash of P200,000 that was included in revenues in5 pointsits 2002 financial statements, of which P120,000 will not be taxableuntil 2003. S's enacted tax rate for 2002 and 2003 is 32%. Whatamount should S report in its balance sheet as deferred income taxliability?# 11Your answer

Solution: Deferred tax liability to be reported = Future taxable amount * tax rate = 120000*32% =…

S Corp. received cash of P200,000 that was included in revenues in 5 point: its 2002 financial statements, of which P120,00o will not be taxable until 2003. S's enacted tax rate for 2002 and 2003 is 32%. What amount should S report in its balance sheet as deferred income tax liability?

S Corp. received cash of P200,000 that was included in revenues in 5 point: its 2002 financial statements, of which P120,00o will not be taxable until 2003. S's enacted tax rate for 2002 and 2003 is 32%. What amount should S report in its balance sheet as deferred income tax liability?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 21DQ

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

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S Corp. received cash of P200,000 that was included in revenues in
5 points
its 2002 financial statements, of which P120,000 will not be taxable
until 2003. S's enacted tax rate for 2002 and 2003 is 32%. What
amount should S report in its balance sheet as deferred income tax
liability?
# 11
Your answer

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Gudubhai
Please put all of the necessary information and computations for better understanding. Thanks ?