The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The following related facts were gathered (Income tax rate for current and future years is 30%):   Cumulative temporary differences, 12/31/2021 Taxable temporary differences- P1,480,000 Deductible temporary differences- P750,000   Permanent differences: Non-taxable revenue- P200,000 Non-deductible expenses- P600,000   Deferred tax asset, December 31, 2020- P150,000 Deferred tax liability, December 31, 2020- P300,000              How much is the total income tax expense (current and deferred) for the year 2021?   P969,000 P900,000 P831,000 P813,000

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Q: Sherrod, Incorporated, reported pretax accounting income of $96 million for 2024. The following…

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Q: 10. Sheridan Corp. prepared the following reconciliation of income per books with income per tax…

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

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Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $75 million…

A: Income taxes is one of the direct tax being imposed on individual or business. This is charged on…

Q: Sherrod, Incorporated, reported pretax accounting income of $92 million for 2024. The following…

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Q: Nirvana Corporation reports pretax financial income of $260,000 for 2022. The following items cause…

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Q: Callaway Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2017 due to…

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Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $80 million…

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Q: Shwonson Industries reported a deferred tax asset of $5.50 million for the year ended December 31,…

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Q: What is the company's deferred income tax expense or benefit?

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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.