s of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences totaling P3,000,000, of which P1,000,000 relates to current items. PNR Co. also had deductible temporary differences totaling P1,500,000, of which P250,000 relates to current items. Pre-tax financial income for the year was P20,000,000. The income tax rate is 30%. How much should PNR Co. report as income tax payable on December 31, 2019?   5,550,000 5,775,000 6,000,000 6,450,000 answer not given

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A: Tax liability and incomeThe amount of money paid by the government on the income or gains earned by…

Q: Sheridan Corporation began operations in 2020 and reported pretax financial income of $212,000 for…

A: Taxable income  = Pretax financial income - Excess of depreciation as per tax over booksIncome tax…

Q: Discord Inc. income tax return shows taxes currently payable for 2020 of $85,000. The company…

A: Deferred tax asset is a non-current asset which shows an advance payment of tax and has a debit…

Q: In 2021, the company accrued wages payable $68,000 and will make the payment in 2022.   Taxable…

A: Adjusted taxable income=Taxable income-Accrued wages=$600,000-$68,000=$532,000

Q: For the year ended December 31, 2019, Nelson Co.’s income statement showed income of $435,000 before…

A: The income which is taxed as per the rules and principles of tax laws is called taxable income.

Q: Prepare the journal entries to record income taxes for 2020. (Credit account titles are…

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Q: Aquafena Inc. recognized taxable income of $140,000 for the year ended December 31, 2020. Aquafena…

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Q: Bonita Company reports pretax financial income of $76,500 for 2020. The following items cause…

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Q: Sherrod, Inc., reported pretax accounting income of $100 million for 2021. The following information…

A: Compute the amounts to record income tax as follows: Result:

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Q: BC Corporation computed a pretax financial income of $6,000,000 for the year ended December 31,…

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Q: r the year ended December 31, 2019, Nelson Co.’s income statement showed income of $425,000 before…

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Q: Kingbird Corporation began 2020 with a $55,200 balance in the Deferred Tax Liability account. At the…

A: Deferred tax liability = cumulative temporary difference x tax rate -  balance in the Deferred Tax…

Q: Hurricane Ltd reports financial income of $100,000 for 2019. The following items cause taxable…

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Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $50 million…

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A: Deferred tax asset: A Deferred Tax Asset is an asset on a Company's balance sheet that may be used…

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.