QUESTION 32The following facts relate to Krung Thep Corporation:1. Deferred tax liability, January 1, 2015, $40,0002. Deferred taxasset, January 1, 2015, $03. Taxable income for2015, $115,0004. Pretax financialincome for 2015, $200,000temporary difference at December 31, 2015, giving rise to future taxabletemporary difference at December 31, 2015, giving rise to futureyears, 40%amounts, $220,000deductible amounts, $35, 0005. Cumulative6. Cumulative7. Tax rate for all8. The company is expected to operate profitably in the future.Instructions:a. Compute income taxes payable for 2015.b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015.Prepare the income tax expense section of the income staement for 2015, beginning with the line "income before incometaxes."Attach FileBrowse Content CollectionBrowse DropboxBrowse My Computer

a) The income tax payable is calculated below,

The following facts relate to Krung Thep Corporation: 1. Deferred tax liability, January 1, 2015, $40,000 2. Deferred tax asset, january 1, 2015, so 3. Taxable income for 2015, $115,000 4. Pretax financial income for 2015, $200,000 temporary difference at December 31, 2015, giving rise to future taxable temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 amounts, $220,000 5. Cumulative 6. Cumulative 7. Tax rate for all years, 40% 8. The company is expected to operate profitably in the future. Instructions: a. Compute income taxes payable for 2015. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income staement for 2015, beginning with the line "income before income taxes. Attach File Browse My Computer Browse Content Collection Browse Dropbox

The following facts relate to Krung Thep Corporation: 1. Deferred tax liability, January 1, 2015, $40,000 2. Deferred tax asset, january 1, 2015, so 3. Taxable income for 2015, $115,000 4. Pretax financial income for 2015, $200,000 temporary difference at December 31, 2015, giving rise to future taxable temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 amounts, $220,000 5. Cumulative 6. Cumulative 7. Tax rate for all years, 40% 8. The company is expected to operate profitably in the future. Instructions: a. Compute income taxes payable for 2015. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income staement for 2015, beginning with the line "income before income taxes. Attach File Browse My Computer Browse Content Collection Browse Dropbox

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following facts relate to Krung Thep Corporation: Deferred tax liability, January 1, 2015, $40,000 Deferred tax asset, January 1, 2015, $0 Taxable income for 2015, $115,000 Pretax financial income for 2015, $200,000 Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000 Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 Tax rate for all years, 40% The company is expected to operate profitably in the future. Instructions: Compute income taxes payable for 2015. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income statement for 2015, beginning with the line “income before income taxes.”
Skysong Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2023 $276,000 35 % $96,600 2024 299,000 30 89,700 2025 368,000 30 110,400 In 2026, Skysong suffered a net operating loss of $441,600, which it elected to carryback. The 2026 enacted tax rate is 29%. Prepare Skysong's entry to record the effect of the loss carryback. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles enter O for the amounts.) Account Titles and Explanation Debit Credit
At December 31, 2018 AP Corporation had a deferred tax liability of P250, 000. At December 31, 2019, the deferred tax liability is P420, 000. The corporation’s 2019 current tax expense is P480, 000. What amount should AP report as total 2019 income tax expense?
1) Compute for the taxable income 2) Compute for the deferred tax asset. 3) Compute for the net income after tax (round off to the nearest whole number)
2. Sage Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Income (Loss) Tax Rate 2015 $52,800 25 % 2016 (77,000 ) 20 % 2017 99,000 20 % 2018 33,000 20 % 2019 115,500 20 % 2020 (66,000 ) 25 % 2021 142,000 25 % Pretax financial income (loss) and taxable income (loss) were the same for all years since Sage has been in business. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized. (a) What entries for income taxes should be recorded for 2016? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Save for Later Attempts: 0 of 1 used Submit…
In each of the following cases, compute the corporation's regular tax, average tax rate and marginal tax rate: Use 2017 tax rate schedule if needed. Required: a. Silva Corporation has $168,000 taxable income for its tax year ended December 31, 2017. b. Goyal Corporation has $168,000 taxable income for its tax year ended December 31, 2018. c. Carver Corporation has $168,000 taxable income for its tax year ended October 31, 2018. Note: For all requirements, Do not round intermediate calculations. Round your final answer to nearest whole dollar amount and average tax rate answer to 2 decimal places. a. b. C. Corporation's Regular Tax $ LA LA X Answer is complete but not entirely correct. Corporation's Marginal Tax Rate 39 % 21 % 37 X % $ $ 48,770 35,280 168,000 X Corporation's Average Tax Rate 35.00 21.00 0.00 % % %
At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000 Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items:Depreciation expense – plant $7,000 Doubtful debts expense 3,000 Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000 Bad debts written off 2,000Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required a) Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied. b) What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
Alvis Corporation reports pretax accounting income of $360,000, but due to a single temporary difference, taxable income is only $220,000. At the beginning of the year, no temporary differences existed.Required:1. Assuming a tax rate of 25%, what will be Alvis’s net income?2. What will Alvis report in the balance sheet pertaining to income taxes?