Subject:- General AccountA company has a provision for long service leave for$35,000. In the same year, the company paid out $5,000 inLong service leave to one of its long-serving employees.Required:A. What is the amount of the temporary difference?B. Does this difference give rise to a deferred tax asset ora deferred tax liability? What is the amount of thisdeferred tax asset/liability? The tax rate is 30%.C. Describe the accounting and tax treatment of the$5,000 payment in the current year.

Detailed explanation: A. What is the amount of the temporary difference?A temporary difference…

Answered: Subject:- General Account A company has…

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter5: Unemployment Compensation Taxes

Section: Chapter Questions

Problem 5PA

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How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred tax asset, and 10,500 noncurrent deferred tax liability. Show how Barth James would report these deferred tax assets and liabilities on its balance sheet.
Subject = General Account
A company has a provision for long service leave for $35,000. In the same year, the company paid out $5,000 in Long service leave to one of its long-serving employees. Required: A. What is the amount of the temporary difference? B. Does this difference give rise to a deferred tax asset or a deferred tax liability? What is the amount of this deferred tax asset/liability? The tax rate is 30%. C. Describe the accounting and tax treatment of the $5,000 payment in the current year.
a) Tax Required Information [The following information applies to the questions displayed below.] FUTA SUTA b) Tax Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, Its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. FICA-Social Security FICA-Me FUTA SUTA Tax a. b. Gross Pay through August 31 $ 6,500 2,800 133,400 FICA-Social Security FICA-Medicare FUTA SUTA FICA-Social Security FICA-Medicare Gross Pay for September $ 1,900 2,900 10,000 September Earnings Subject to Tax September Earnings Subject to Tax September Earnings Subject to Tax Tax Rate Tax Rate Tax Rate Tax Amount Tax Amount Tax Amount
The following information pertains to Ramesh Company for the current year: Book income before income taxes $ 1,06,000 Income tax expense 45,500 Income taxes due for this year 28,000 Statutory income tax rate 35% The company has one permanent difference and one temporary difference between the book and taxable income. a. Calculate the amount of temporary difference for the year and indicate whether it causes book income to be more or less than taxable income. b. Calculate the amount of permanent difference for the year and indicate whether it causes book income to be more or less than taxable income. c. Provide the journal entry to record income tax expenses for the year. d. Compute the effective tax rate (that is, income tax expense divided by book income before taxes).
In the following problems, use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Stys Company’s payroll for the year is $1,210,930. Of this amount, $510,710 is for wages paid in excess of $7,000 to each individual employee. The SUTA tax rate for the company is 3.2% on the first $7,000 of each employee’s earnings. Round your answers to two decimal places. Round your answers to two decimal places. a. The amount of FUTA tax for the year is $fill in the blank 1. b. The amount of SUTA tax for the year is $fill in the blank 2.
CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 1. Compute the taxable income
At the end of the year, a deductible temporary difference of $40 million has been recognised due to the difference between the carrying amount of a liability account for estimated expenses and its tax base. Taxable income is $50 million. No temporary differences existed at the beginning of the year, and the tax rate is 35%. Required: a. Prepare the journal entry(s) to record income taxes during the period. b.How much will income tax expense be shown in the income statement? c. What will be the balance sheet disclosure during the period regarding taxes?
At the end of the year, a deductible temporary difference of $40 million has been recognised due to the difference between the carrying amount of a liability account for estimated expenses and its tax base. Taxable income is $50 million. No temporary differences existed at the beginning of the year, and the tax rate is 35%. Required: a. Prepare the journal entry(s) to record income taxes during the period. b.How much will income tax expense be shown in the income statement? c.
Company K operates in a jurisdiction that levies an income tax with the following rate structure: Percentage Rate Bracket Income from -0- to $75,000 Income from $75,001 to $150,000 Income in excess of $150,000 Company K incurs a $35,000 deductible expense. Required: a. Compute the current year tax savings from the deduction assuming that Company K's taxable income before considering the additional deduction is $71,600. b. Compute the current year tax savings from the deduction assuming that Company K's taxable income before considering the additional deduction is $178,000. c. Compute the current year tax savings from the deduction assuming that Company K has a $7,250 loss before considering the additional deduction. 7% 10 15 Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the current year tax savings from the deduction assuming that Company K's taxable income before additional deduction is $71,600. Tax savings
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