Sandhill Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $1080000 Estimated litigation expense 2800000 Installment sales (2240000) Taxable income $1640000 The estimated litigation expense of $2800000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $1120000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $1120000 current and $1120000 noncurrent. The income tax rate is 20% for all years

Q: On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The…

A: Step 1: 1. Compute the amount at which the cost of the building should be recorded as follows:

Q: exclude this note from current liabilities

A: Second option is wrong because even though the company demonstrates the ability to refinance before…

Q: Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable…

A: Future taxable amount = $50,400 + $55,900 + $61,100                                      = $167,400…

Q: Pretax financial income $930000 Estimated litigation expense 2550000 Installment sales (2040000)…

A: Deferred tax liability means taxable amount is less then income as per financial income. And tax…

Q: On July 1, 2020, ATLAS grants a 5-year P5,000,000 non-interest bearing advance to its president The…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: Blossom Corporation had a projected benefit obligation of $3,142,000 and plan assets of $3,308,000…

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Q: On December 31, 2023, Cullumber Company rendered services to Riverbed Corp. at an agreed price of…

A: We only have to use the tables provided, so, it is easier to calculate what is asked. The…

Q: DD Co. established a P90 million liability at the end of 2020 for the estimated litigation…

A: Answer:-  Deferred tax liability: - When a tax obligation is accrued in one fiscal year but is due…

Q: Sandhill Corporation had a projected benefit obligation of $3,210,000 and plan assets of $3,371,000…

A: INTRODUCTION: A component's or asset's initial cost is often written down over a specific period of…

Q: Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at…

A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…

Q: On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual…

A: As the payments are made at the end of the year i.e. December 31,2020, we will use present value of…

Q: Sunland Corporation had a projected benefit obligation of $3,323,000 and plan assets of $3,561,000…

A: Amortization -Amortization is the process of distributing or allocating a long-term liability's or…

Q: Sheridan Corporation had a projected benefit obligation of $2,903,000 and plan assets of $3,084,000…

A: The minimum amortization of the actuarial loss refers to the minimum required period over which a…

Q: On June 30, 2024, the Stone Company purchased equipment from Paper Corporation. Stone agreed to pay…

A: The sales value is recorded at the price mutually agreed between a buyer and a seller. If a sale is…

Q: Calculate the amount of taxable income for 2020. Taxable income, 2020 $. Enter your answer in…

A: There are temporary differences which causes the differences of the incomes as per two separate…

Q: accounting and taxal be in ogual amounts

A:

Q: Wittco Company reports pretax GAAP income in 2020, its first year of operations, of $180,000.…

A: The deferred tax is a future tax liability or asset, This tax is two types of deferred tax liability…

Q: In 2020, Sandstorm Corporation incurs $25,000 in research and experimental expenses. Benefits from…

A: 174 - Research and experimental expenditures (a)Treatment as expenses A taxpayer may treat…

Q: $122093

A:

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Solution: Deferred tax asset = Excess accrued warranty * tax rate of 2021  = 24500*32%  = 7,840

Q: Coronado Corporation had a projected benefit obligation of $2,890,000 and plan assets of $3,097,000…

A: Corridor rule says that losses or gains which  exceed 10 % of Higher of Pension benefit obligation…

Q: Tamarisk Corporation had a projected benefit obligation of $3,210,000 and plan assets of $3,371,000…

A: INTRODUCTION: Amortization is the process of transferring an asset from the balance sheet to the…

Q: iken fro Igado Company s 20 Tinancial records! Pretax accounting income- P1,500,000 Accrued warranty…

A: tax rate 2020 - 30%  2021- 32% 2022 - 34% 2023 - 35%

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: Shin Corporation had a projected benefit obligation of $4,300,000 and plan assets of $4,100,000 at…

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Q: 9. Otis Worldwide began operations in 2021. The company sometimes sells used warehouses on an…

A: Given the following information:  Installment income in 2021 was $300,000, which Otis expects to…

Q: Carla Vista Corporation had a projected benefit obligation of $3,280,000 and plan assets of…

A: A pension is a retirement plan that provides a fixed or regular income to an individual after they…

Q: ord Corporation amended its pension plan on January 1, 2020, and granted $162,540of prior servic…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: ABC Company has a P15,000,000, two-year note payable to  DEF  that matures October 31, 2021. ABC's…

A: Solution Concept The current portion of the long term debt is classified as the current liabilities…

Q: On January 1, 2020, FB Company had the following data in connection with its defined benefit plan:…

A: Interest = Beginning  Defined benefit obligation x Discount rate = P7,500,000 x 10% = P750,000

Q: For 2020, Sweet Inc. computed its annual postretirement expense as $234,100. Sweet’s contribution to…

A: Post-retirement benefit expense is the cost of pension recognized for the period. When determining…

Q: Ivanhoe Corporation had a projected benefit obligation of $3,233,000 and plan assets of $ 3,394,000…

A: INTRODUCTION:A component's or asset's initial cost is often written down over a specific period of…

Q: In 2024, KP Building Incorporated began work on a four-year construction project (called Cincy One).…

A: Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…

Q: On January 1, 2019, Lala Company received an P800,000, 8%, 2 year note from Move Corporation as…

A: Annual installment = Total amount to be collected / no. of installment = 600000/3 = P200,000

Q: For 2020, Sarasota inc. computed its annual postretirement expense as $ 237,200. Sarasota's…

A: Post-retirement benefit expense is the cost of pension recognized for the period. When determining…

Q: At the beginning of 2021 VHF Industries acquired a machine with a fair value of 7,985,420 by issuing…

A: Note payable is the liability which increases due to the purchases made on credit.

Q: For 2020, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell's…

A: Journal entry: A journal entry is a systematic record of a financial transaction recorded in…

Q: 020 Ming Xo Inc. generated taxable income of $420,000 and incurred expenses of $490,000. What is the…

A: Remittance is defined as any money transferred from one party to another in the form of a bill,…

Q: how much is the net remeasurement gain/loss at the end of the year?

A: Net re-measurement is the measurement which has been calculated by the company when all the losses…

Q: Buffalo Corporation had a projected benefit obligation of $3,280,000 and plan assets of $3,446,000…

A: Solution:- calculation of the Minimum amortization of the actuarial loss as follows under:-

Q: Minimum amortization of the actuarial loss?

A: INTRODUCTION: Amortization is the process of progressively applying an asset's cost to expenditure…

Q: Oriole Co. at the end of 2021, its first year of operations, prepared a reconciliation between…

A: Deferred tax assets and deferred tax liabilities are two types of temporary differences that arise…

Q: On December 31, 2025, Concord Inc. rendered services to Beghun Corporation at an agreed price of…

A: NOTES RECEIVABLEValue of Notes Receivable represents the amount which is receivable from the…

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.