sume that Peridot operates in an industry for which NOL carryback is allowed. In its first four years of operations Peridot reported the following operating income (loss) amounts: 2018 $ 176,000 2019 126,000 2020 (438,000 ) 2021 476,000 There were no other items affecting deferred income taxes in any year. In 2020, Peridot elected to carry back its operating loss. The enacted income tax rate was 25%. In its 2021 income statement, what amount should Peridot report as income tax expense?

Q: 8. In 2020, Ross Stores had reported a deferred tax asset of $146 million with no valuation…

A: Income tax expense refers to the process of determining the net amount of expense which is computed…

Q: Pinnacle West operates in an industry for which NOL carryback is not allowed, and had the following…

A: Solution:- Calculation of the  Pinnacle West's income tax expense in 2021 as follows under:-

Q: In its first year of operations, Pioneer Natural reported pretax accounting income of $680 million…

A: Deferred tax liability implies a future liability for the entity due to partial or non-payment of…

Q: Bain co. had the following tax information. In 2018 Bain co. suffered a net operating loss of 48,000…

A: Loss carrybacks are similar to loss carry forward, except that companies apply their net operating…

Q: Western Digital reported $950 million in income before income taxes for 2021, its first year of…

A: Deferred tax liability is the amount of tax to be paid in the future on the temporary taxable…

Q: Caesar Corporation reported income before taxes of $180,000 for the years 2020, 2021, and 2022. In…

A: A Net Operating Loss (NOL) Carryback allows businesses suffering losses in one year to deduct them…

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: The Jets Company recorded a deferred tax liability in the amount of $18,750 in December 2020, due to…

A: Step 1:Part-a)Determining the income tax rate that is enacted rate for year 2020:- Formula to…

Q: On December 31, 2020 Delta Inc. recorded $28,000 deferred revenue on customer deposits received in…

A: As per Generally Accepted Accounting Principles, the Income and expenses are accounted on accrual…

Q: iability differ Cournal entry

A: When a tax is due in current year but it is paid in the next year it is…

Q: Oriole Corporation reported the following results for its first three years of operation: 2020…

A: Solution: Income tax benefit from loss carryforward for 2021 = 30,00,000*30% = $900,000

Q: In 2020, Uniontown Books had EBIT equal to -$950,000. In 2021, its EBIT was $2,200,000. The company…

A: The objective of the question is to calculate the tax liability of Uniontown Books for the year…

Q: Nash, Inc., changed from the LIFO cost flow assumption to the FIFO cost flow assumption in 2020. The…

A: When Change of Inventory causes increases in Income then Inventory Increases  to that extent and and…

Q: 1. & 2. Determine the type of accounting change and prepare the appropriate journal entry to record…

A: Introduction:- Deferred tax liability arises due to timing difference in the value of assets as per…

Q: CSA Corporation suffered the following net operating losses for the last 5 years: 2017  P100,000…

A: Loss from operations arises when the business activities do not provide any fruitful results to the…

Q: Blue Waters Corporation prepared the following reconciliation for its first year of operations:…

A: Income tax is the amount of tax which is paid by the entity on its income. It is computed on the…

Q: 1. Qorvo reported $1,000 million in income before income taxes for 2021, its first year of…

A: Qorvo's Income before incomes taxes for 2021 = $1000 million Tax depreciation exceeded depreciation…

Q: Peroni Company paid wages of $178,000 this year. Of this amount, $128,200 was taxable for net FUTA…

A:

Q: ng Garong Construction Company decided at the beginning of 2020 to change from the cost recovery…

A: The profit-sharing plan refers to the type of retirement plan which helps an employee to be a part…

Q: Wynn Farms reported a net operating loss of $270,000 for financial reporting and tax purposes in…

A: A journal entry is a record of the business transactions in the accounting books of a business.

Q: Before considering a net operating loss carryforward of $75 million, Fama Corporation reported $110…

A: Tax payable refers to the amount of tax that an individual or entity owes to the government based on…

Q: Metlock Inc. incurred a net operating loss of $486,000 in 2025. The tax rate for all years is 30%.…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Wynn Farms reported a net operating loss of $190,000 for financial reporting and tax purposes in…

A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Q: Wynn Farms reported a net operating loss of $160,000 for financial reporting and tax purposes in…

A: When revenues is less than expenses or costs , a net operating loss is recognized. According to IRS…

Q: Violet Corporation reported a loss in 2022 of $610,000 and carried back the loss to the extent…

A: The objective of the question is to determine the correct journal entry for Violet Corporation's…

Q: Cullumber Corporation reported the following results for its first three years of operation: 2020…

A: A deferred tax asset represents the overpayment or advance payment of taxes. It is the opposite of a…

Q: efore considering a tax loss carryforward of $80 million, Aero Corporation reported $200 million of…

A: Lets understand the basics Income tax payable always needs to be calculated based on taxable profit…

Q: Uno Company reported income before tax for the first six months ended June 30, 2021 at P5,000,000.…

A: Interim financial statements are those financial statements which are prepared in between two…

Q: Caesar Corporation reported income before taxes of $220,000 for the years 2020, 2021, and 2022. In…

A: The net operating loss carryback rule allows a company to apply a prior year's net operating loss…

Q: Skysong Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2023…

A: The objective of this question is to prepare the journal entry to record the effect of the loss…

Q: At the end of 2021, Schrutte Inc. in its first year of operations, had pretax financial income of…

A: Taxable income = Pretax financial income + Estimated expenses deducted but not yet paid - Extra…

Q: Wynn Farms reported a net operating loss of $128,000 for financial reporting and tax purposes in…

A: Net Operating Loss Net operating loss denotes a situation in which operating expenses exceed net…

Q: B Co. reported a deferred tax liability of $26.0 million for the year ended December 31, 2017,…

A: Solution: Taxable income for 2018 = $95 million Tax rate for 2018 = 40% Changes in tax rate in 2018…

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Deferred tax liability: The deferred tax liability is the excess, over received, or received in…

Q: Accounting Muckingjay Inc. opened in 2022. The company reported sales revenue of $486,000 and…

A: The necessary journal entry to record the Net operating loss to be carried shall be  Deferred tax…

Q: Required information [The following information applies to the questions displayed below] Last year,…

A: Answer:- Tax liability meaning:- A person's or an entity's tax liability is the total amount of…

Q: Compute income taxes payable for 2025. Income taxes payable $ 69

A: The current year's income tax expense is computed by multiplying the applicable income tax rate and…

Q: Giada Foods reported $970 million in income before income taxes for 2021, its first year of…

A: Deferred tax liability is the amount of tax to be paid in the future on the temporary taxable…

Q: Blossom Corporation reported the following results for its first three years of operation: 2020…

A: A deferred tax asset represents the overpayment or advance payment of taxes. It is the opposite of a…

Q: 15. ABC began operating on January 1, 2020. At the end of the first year of operation, ABC reported…

A: Prepaid rent.                                      P 1000000…

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.