Visayas Corporation has one temporary difference at the end of 2020 that will reverse and cause deductible amounts of P500,000 in 2021, P650,000 in 2022, and P400,000 in 2023. Visayas' pretax financial income for 2020 is P2,000,000, and the tax rate is 30% for all years. There are no deferred tax assets or liabilities at the beginning of 2020. Visayas expects profitable operations to continue in the future. REQUIRED: (b) Compute the taxable income and income tax expense- current for 2020. Compute also the deferred tax asset at December 31, 2020. Prepare journal entries to record income tax expense for 2020.

Visayas Corporation has one temporary difference at the end of 2020 that will reverse and cause deductible amounts of P500,000 in 2021, P650,000 in 2022, and P400,000 in 2023. Visayas' pretax financial income for 2020 is P2,000,000, and the tax rate is 30% for all years. There are no deferred tax assets or liabilities at the beginning of 2020. Visayas expects profitable operations to continue in the future. REQUIRED: (b) Compute the taxable income and income tax expense- current for 2020. Compute also the deferred tax asset at December 31, 2020. Prepare journal entries to record income tax expense for 2020.

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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Required: Use the following information to complete Rhonda Hill's federal income tax return. If any information is missing, use reasonable assumption to fill in the gaps. Prepare this return for the year ending December 31, 2021 You may use any tax software program to complete the return, or you can do them manually by downloading fillable forms from the IRS website (www.irs.gov). The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: 1. Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter & Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright lives with Rhonda in her home. Mabel is retired and receives $2,400 of Social Security payments each year. Mabel is able to save this money because Rhonda provides all of Mabel's support. Rhonda also provided the following information. Rhonda does not want to…
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For each employee listed, use the percentage method to calculate federal income tax withholding, assuming that each has submitted a pre-2020 Form W-4. Then calculate both the state income tax withholding (assuming a state tax rate of 5.0% of taxable pay, with taxable pay being the same for federal and state income tax withholding), and the local income tax withholding. Refer to the Federal Tax Tables in Appendix A of your textbook.NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. Armand Giroux (single; 0 federal withholding allowances) earned weekly gross pay of $1,490. For each period, he makes a 401(k) retirement plan contribution of 7% of gross pay. The city in which he works (he lives elsewhere) levies a tax of 1.1% of an employee's taxable pay (which is the same for federal and local income tax withholding) on residents and 0.70% of an employee's taxable pay on…
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Music Media Ltd. prepares statements quarterly. Port Ai Required: 1. Based on 2019 results, Music's estimated tax liability for 2020 is $303,960. Music will accrue 1/18 of this amount at the end of each month (assume the installments are paid the next day) Prepare the entry on January 31, 2020, to accrue the tax liability and on February 1 to record the payment. View transaction list Journal entry worksheet 1
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Current Attempt in Progress For the year ended December 31, 2023, Coronado Ltd. reported income before income taxes of $96,000. In 2023, Coronado Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023. The company paid $72,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Coronado Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $40,000, of which $29,000 was actual repairs for 2023 and the remaining $11,000 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $24,000 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $250,000. Capital Cost Allowance (CCA) claimed for the year was $273,000.…