T&T restaurant, non-VAT registered, had gross receipts during the year which amount to P2,500,000. If the year of operation is 2019, * Subject to Output VAT of P300,000 O Subject to Output VAT of P267,854 Subject to Percentage tax of P75,000 Subject to Percentage on the P2.000.000 O O
Q: Current tax credit balance 1,600,000 Deferred tax liability 5,200,000 the halance on current tax…
A: Deferred Tax Assets / Liability: When the book accounting profit is more than taxable profit then it…
Q: Cullumber, Inc. had pre-tax accounting income of $3900000 and a tax rate of 20% in 2021, its first…
A: Pre-tax Accounting Income 3,900,000 Add: Received rent from Jane, Co. for 2022 to be taxed in…
Q: ermont Company, which has a June 30 fiscal year-end and reports under ASPE, sells ice cream. It…
A: Step 1 Journal is the part of Book keeping.
Q: if a property transaction is scheduled to close on May 14. The purchase agreement states that the…
A: Variables in the question:Transaction closing date=May 14Beginning date of year=January 1Total tax…
Q: This is under Singapore Tax Laws. For the year ended 30 September 2020, Maximus Pte Ltd’s trading…
A: Note : 1) Interest of $3600 matured as at Dec 31, 2020 will not be included in statutory income for…
Q: On December 31, 2020, La Puendia Company reported the following: Income before tax for accounting…
A: Deferred tax: When accounting income is different from income under tax laws, it is called as…
Q: Calculate the amount of any temporary differences for 2023. Temporary differences GA 56,000
A: Temporary differences in accounting arise from divergent timings between recognizing revenues,…
Q: Prepare the journal entries to record income taxes for 2020. (Credit account titles are…
A: Deferred tax liability (DTL) refers to the amount of tax raised for the present financial year but…
Q: JAY Co. reported net income for the current year 2021 at ₱2,395,000 before taxes. Included in the…
A: The income tax is the tax the government imposes on business income and individuals. It is a source…
Q: EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax…
A: Particulars Amount Accounting income per book P560000 Permanent differences :…
Q: A company makes the following journal entry for 2021: Dr. Income Tax Expense…
A: Income tax expense = Income tax payable + Deferred tax liability created during the year - Deferred…
Q: A VAT-registered business makes a sale of P10,000, inclusive of VAT. The VAT on the sale can be…
A: VAT: VAT stands for Value Added Tax. It is a tax a customer is liable to pay on the goods or…
Q: for calender year 2020, power inc. had net income before income taxes in the amount of $10,000. Tax…
A:
Q: Under accrual basis, rental income of Kamahal-Mahal Company for the year 2020 is P600,000.…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: For the year ended December 31, 2023, Crane Ltd. reported income before income taxes of $82,000. In…
A: First of all we have to understand that certain deductions in income tax are not allowed although we…
Q: Accounting income (loss) and taxable income (loss) were the same for all years involved. Assume a…
A: Given:Tax rate for 2018 and 2019: 30%Tax rate for the remaining years: 25%All income and losses are…
Q: Export-Import Corporation paid the amount of P13,000.00 to Hernando’s Hideaway Resort Corporation…
A: To promote employee motivation or job satisfaction, some employers gives additional benefits to…
Q: In the first year of operations 2021, Samuel Inc. had a pre-tax accounting income of $4,050,000 and…
A: Step 1 When we find income for taxable purpose, it will be different form income under accounting…
Q: 2 permanent differences and 2 temporary differences from items (a) to (g) shown in the table above.…
A: Income tax is the tax liability which is compulsorily paid by the individual or the entity based…
Q: 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000…
A: Net Sales = 20,00,000 Purchases = 12,00,000 Opening Inventory = 2,00,000 Closing Inventory =…
Q: Brush Company has the following income before income tax and estimated effective annual income tax…
A: Income Statement:- It is a statement where expenses and revenue incurred during the period recorded.…
Q: Sheridan, Inc. had pre-tax accounting income of $3200000 and a tax rate of 20% in 2021, its first…
A: To determine the deferred tax accounts and balances at the end of 2021, we need to identify…
Q: aramel Corp. prepared the following reconciliation of income per books with income per tax return…
A: This provision is an important part of a company's financial statements since it indicates the…
Q: Motown Memories Incorporated Statement of Operations at December 31, 2021 Net sales $ 50,000,000…
A: Part A: Current income tax expense or benefit for 2021 Income before income taxes $15,000,000…
Q: ABC Airlines requires all customers to pay for their flight tickets in advance. Assume ABC reports a…
A: The revenue earned during the period is to be recorded in the income statement.
Q: Leni Company had the following transactions during the quarter ended March 31, 2021: • Loss…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: 8 A company has income before income taxes of $879,000 for the current year. The current provision…
A: The income statement shows the company's revenues and expenses earned during the particular period.…
Q: Required: a) Calculate taxable income and taxes payable for the 2020 year. b) Determine…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: The following information applies to the operations of MK Inc. for 2022 and 2023. Assume a tax rate…
A: The objective of the question is to calculate the income tax expense for MK Inc. for the year 2022.…
Q: The Snella Company reports 2023 Pre-tax Net Income of $10,000. The following items exist:
A: Income tax is levied on income. The composition of total tax revenue earned from this taxation…
Q: Described below are certain transactions of Pharoah Company for 2021: On May 10, the company…
A: 9% note issued on June 1 for $64,800 ($96,000 - $31,200) has accrued interest for 7 months till…
Q: For the calendar year 2021, ABC Corporation a retailer, has gross sales of PI.4 billion, cost of…
A: The amount of income tax due is the difference between the net income received and the amount paid…
Q: The Stone Inn earned $167,284 in taxable income for the year. How much tax does the company owe on…
A: The tax owed by the company can be calculated as per the tax slab.
Q: Prepare the December 31, 2026, income statement for Dry Valley Corporation, starting with inc…
A: Income statement is a presentation of the financial performance of a business entity during a…
Q: A VAT registered person engages in both VAT and VAT exempt business. During the year total sales…
A: Input tax refers to the central tax (CGST), state tax (SGST), integrated tax (IGST), or union…
Q: s of P150,000 November 2021. It: porate Tax Rate is 25%. If the co ecember 2021, what is the poss
A: Given In november, Gross sale =P1400000 Cost of sales=P560000 Its profit is: 1400000-560000 =840000…
Q: On June 30, 2021, Line Company incurred a P100,000 net loss from disposal of a business segment.…
A: Loss from disposal of business segment = P 100000 Property taxes paid = 40000
Q: Lily began trading on 1 February 2021. Her tax adjusted trading profits for the 15-month period…
A: The overlap profit is the amount of profit which has been overstated or which is the profit of…
Q: For the year ended December 31, 2023, Tamarisk Ltd. reported income before income taxes of $98,000.…
A: As you have asked multiple question we can solve only first three sub-parts at a time so, please…
Q: At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there…
A: Considering cash accounting system tax is payable only on actual profit realise cash. On timing…
Q: Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year…
A: The amount of cost recognized by a business in an accounting period for the government tax on its…
Q: of P20,000,000 and operating expenses of P2,000,000, inclusive of representation expense amounting…
A: Ans. Allowable regular itemized deduction will be net of operating expenses and representation…
Q: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…
A: taxable income of P1,658,000
Q: Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018.…
A: Lets understand the basics. When current tax expense is same as income tax payable then accounting…
Step by step
Solved in 2 steps
- What is the amount of net income after tax that Vignette Company should report for the year 2021? Vignette Construction Company changed from completed contract method to the percentage of completion method of accounting for long-term construction contracts during 2021. For tax purposes, the company employs the completed contract method and will continue this approach in the future. The appropriate information related to this change is as follows: Pre-tax Income from Percentage of Completion 2020 2,028,000 1,820,000 Completed Contract 1,534,000 1,248,000 2021 Income tax rate is 35%. What is the amount of net income after tax that Vignette Company should report for the year 2021? Your answerLewes Company appropriately uses the installment sales method for tax purposes and the accrual method for revenue recognition for accounting purposes. Pertinent data at December 31, 2016, the close of the first year of operations, are as follows: Revenue Recognized Revenue Recognized Customer for Accounting Purposes for Tax Purposes Lowe's Builders $200,000 $100,000 Top Down Plumbing 500,000 350,000 Glass Plus Windows 600,000 350,000 Lewes's tax rate is 30%. What amount should be included in the deferred tax account at December 31, 2016 for these installment sales?Dan plc is preparing its financial statements for the year ended 31 December 20X7. Its initial trial balances show the following balance: Income tax payable on 1 January 20X7 Income tax paid M 337,850 £ 351,083 The income tax paid during the year ended 31 December 20X7 completely settles the 20X6 liability. The total estimated tax due on the profits for the year ended 31 December 20X7 is 402,917 Dan plc should record the following journal at 31 December 20X7 A. Debit Income tax expense £389,684; Credit Income tax payable £51,834, Credit Income tax paid £337,050 B. Debit Income tax expense £389,684, Credit Income tax payable £65,067, Credit Income tax paid £324,617 C. Debit Income tax expense £402,917, Credit Income tax payable £65,067, Credit Income tax paid £337,850 D. Debit Income tax expense £402,917, Credit Income tax payable £51,834; Credit Income tax paid £351,083
- Marr Company reported rental revenue of P2,210,000 in its cash basis income tax return for the year ended November 30, 2010 . Additional information is as follows: Rent receivable – November 30, 2010 1,060,000; Rent receivable – November 30, 2009 800,000; Under the accrual basis, Marr should report rental revenue of Choices; 1,920,000 1,950,000 2,440,000 2,470,000Ehrlich Company had the following information for 2021. 1. Pretax financial income for 2021 is $100,000. 2. The tax rate enacted for 2021 and future years is 20%. 3. Differences between the 2021 income statement and tax return are listed below: a. Warranty expense accrued for financial reporting purposes amounts to $7,000. Warranty deductions per the tax return amount to $2,000. b. Gross profit on construction contracts using the percentage-of-completion method per books amounts to $92,000. Gross profit on construction contracts for tax purposes amounts to $67,000. c. Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return. d. A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income. e. Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. Instructions: a. Compute…Famous detergents 2019 income statement showed pretax accounting income of 1,500,000. To compute income tax liability, the following 2019 data are provided: Income from exempt municipal bonds 60,000 Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes 120,000. Estimated income tax payments made 300,000, corporate income tax rate 30%. What amount of current income tax liability should be included in December 31, 2019 balance sheet? What amount is a deferred tax asset or liability?Show the Income Statement presentation?
- XYZ Company manufactures equipment that are sold through installment. XYZ recognizes revenue on the year of sale for financial reporting and when installment payments are received for income tax purposes. In 2020, the company earned a gross profit of P6,000,000 for accounting and P1,500,000 for income tax purposes. In relation to its sales, XYZ also provides warranties for its equipment. Warranty costs are accrued as expense for financial reporting and recognized as deductible expense in the income tax return when paid. Accrued warranty expense for 2020 is P2,500,000, but only P500,000 of warranty costs are actually paid during the year.In addition, XYZ also earned P500,000 of interest, net of final withholding taxes, from its bank deposits. Interest income subject to final withholding taxes is non-taxable income for income tax purposes. The entity also paid P100,000 insurance premium on the life of its president in relation to an insurance policy where XYZ Company is the beneficiary.…Parker Ltd had the following opening balances for the current year beginning 1 July 2020: Deferred tax asset (DTA) $24 000 Deferred tax liability (DTL) $15 000 If the company tax rate decreased from 30% to 25%, the adjusting journal entry would include: a. Dr DTL 3 000; Cr DTA 4 800 b. Cr DTL 4 000; Dr DTA 2 500 c. Cr DTA 4 000; Dr DTL 2 500 d. Cr DTL 4 800; Dr DTA 3 000 e. Cr DTA 1 200; Dr DTL 750Foster Company reported pretax financial income of $350,000 for 2021. Foster uses an accelerated form of depreciation for tax purposes, and it exceeds book depreciation by $50,000. The tax rate for 2021 is 20%. Record the journal entry at the end of 2021, be sure to include calculations, as well as income tax expense, a deferred account, and income tax payable.
- A company makes the following journal entry for 2021: Dr. Income Tax Expense xxxx Dr. Deferred Tax Asset 80,000 Cr. Deferred Tax Liability 16,000 Cr. Income Tax Payable 200,000 On the income statement, the amount for deferred portion of income tax expense for 2021 appears as: _______________. (Very important: Just enter the amount. DO NOT put a plus or minus sign in front of the amount.)A, keepers of garage, whose gross receipts in year 2017 totaled P 3,050,000. In year 2018, the total receipts of A amounted to P 4,000,000 with disbursements of operating expenses of P 2,000,000. What is the common carriers tax due from A?Brush Company has the following income before income tax and estimated effective annual income tax rates for the first three quarters of 2019. Quarter Income before income Estimated Effective Tax Tax provision rate 7 st 120,000 12 2nd 130,000 10 3rd 140,000 14 Required: What should be Brush company estimated income for "First" quarter income statement? Select one: a. $54,600 b. None of the other points c. $39,000 Od. $46,800 %24