Chocolate Pie Company's taxable income and other data for 2020 are presented below:         Taxable Income  $ 500,000     Interest received on municipal bonds              55,000     Estimated bad debt expense (not written off)              30,000     Cash expenditures for warranties              98,000     Product warranty expense for accounting purposes            152,000     Gross profit on installment sales for 2020            170,000     Gross profit recognized for tax purposes based on 2020 installment sales 150,000                                      Required:       a. Calculate 2020 pretax financial income.       b. For each item, explain why there is a difference if any exists, between how it is treated for tax purposes and pretax financial income.

Q: XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax…

A: Pretax income: It is generally the income of the entity in which all the expenses, interest and…

Q: The following information relates to Fountain Designs Limited. 1. Pretax financial income for 2020…

A: Taxable income is to be computed after taking into account all items causing both temporary and…

Q: Riverbed Company reports pretax financial income of $65,000 for 2020. The following items cause…

A: Hey, since there are multiple sub-parts posted, we will answer first three sub-parts.

Q: The following information applies to the questions displayed below.] Arndt, Inc. reported the…

A: please like the answer your response matters  Requirement-1: a. Casualty insurance expense…

Q: Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable…

A: In this question, we have to pass the journal entry related to provisions for tax in the year 2019,…

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Solution: Deferred tax asset = Excess accrued warranty * tax rate of 2021  = 24500*32%  = 7,840

Q: Metals Corporation reports pretax financial income of $260,000 for 2019. The following items cause…

A: Income tax is the part of the income paid to the government. It is a is a government tax on the…

Q: Gore Company, organized on January 2, 2021, had pretax accounting income of $6,200,000 and taxable…

A: Journal entries refers to the systematic documentation of the financial transactions of the company…

Q: At the beginning of 2021; Cullumber, Inc. had a deferred tax asset of $26000 and a deferred tax…

A: Taxable Income is Income as per Tax Laws . This Income can be different from accounting due to mainy…

Q: Ivanhoe Company has the following two temporary differences between its income tax expense and…

A: In Balance Sheet  Deferred tax asset 2022 = Deferred tax asset 2020 + Deferred tax asset 2021 +…

Q: Zurich Company reports pretax financial income of $70,000 for 2020. The following items cause…

A: a. Compute taxable income and income taxes payable for 2020.Taxable income = Pretax financial income…

Q: Mitchell Corporation had income before income taxes of $195,000 in 2020. Mitchell’s current income…

A: Given that: Mitchell Corporation had income before income taxes of $195,000 in 2020. Mitchell’s…

Q: J-Matt, Inc., had pretax accounting income of $319,000 and taxable income of $352,000 in 2021. The…

A: The temporary difference due to estimated product warranty costs would result in deferred tax asset.…

Q: Sherrod, Inc., reported pretax accounting income of $76 million for 2021. The following information…

A: Every business must be evidenced in at least two places, according to the logic of a journal entry…

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: KreamyKeyk Company, in its first year of operations, has the following difference between the…

A: 1. Deferred tax liability to be reported in KreamyKeyk's statement of financial position at December…

Q: The following information was taken from the accounting records of Lancer Inc, for the year ending…

A: The question is related to computation of taxable Income for the year 2020. We will proceed with…

Q: Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $16 million and…

A: Part 1:

Q: Tokwa't Baboy Company prepared the following reconciliation of income per books with income per tax…

A: Note:  income tax provision is created on taxable income.   Total provision for income tax =…

Q: Lolo Inc. had pre-tax accounting income of P900,000 in 2020, its first year of operations. During…

A: Received rent from mama co for the year 2021 in 2020, it means rent is received in advance. it is an…

Q: J-Matt, Inc., had pretax accounting income of $307,000 and taxable income of $328,000 in 2021. The…

A: Income Tax expense and Deferred Tax Asset: The expense that is mandatorily is to be paid by an…

Q: At the beginning of 2021; Cullumber, Inc. had a deferred tax asset of $26000 and a deferred tax…

A: Taxable income is also described as adjusted gross income which is derived by deducting deduction or…

Q: Baltimore inc reported pretax gaap income of $45,000 in 2020. The company determined it had deducted…

A: The first step is to compute the taxable income of the business. For computing the taxable income,…

Q: henron, Inc. had pre-tax accounting income of P1,350,000 and a tax rate of 40% in 2020, its first…

A: PARTICULARS    AMOUNT IN (P) Pre-Tax Accounting income           P1,350,000…

Q: Martinez Corporation reports pretax financial income of $264,100 for 2020. The following items cause…

A: Taxable income= Pretax financial income +/- temporary differences +/- permanent differences.…

Q: Bramble Company has the following two temporary differences between its income tax expense and…

A: Taxable income: It is the income calculated as per the tax laws and on which the applicable tax…

Q: okwa't Baboy Company prepared the following reconciliation of income per books with income per tax…

A: Formula: Total provision for income tax = Taxable income x Tax rate

Q: ABC Corporation provides you with the following information for the 2020 tax year, which was the…

A: Tax is the charge which is charged on the taxable income of the taxpayer earned during the year. The…

Q: At the beginning of 2021, a company had future deductible amounts of $400,000 and the enacted tax…

A: Future deductable amount = 400000*27% = $108000 Amount that need to be deductable due to change in…

Q: Cranbrook Corp., reported pre-tax accounting income of $400,000 for the calendar year 2020. To…

A: Answer: Correct option is d. $73,000

Q: Tokwa't Baboy Company prepared the following reconiliation of income per books with income per tax…

A: Solution: Total provision for Income tax = Book income before taxes * Tax rate

Q: Brandon Inc. reported the following pre-tax accounting incomes (losses):…

A: The correct answer for the above mentioned question is given in the following steps for you…

Q: Mini, Inc., earns pretax book net income of $1,132,000 in 2020, its first year of operations. Mini…

A: There are two types of differences can arise in the accounting. One is temporary difference and…

Q: The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income…

A: Profit before tax: The amount of a company's net earnings prior to adjustment of income taxes is…

Q: A company made $49,000 in installment sales in 2021 and will receive payment from customers in…

A: Pretax accounting income = Taxable income + Installment sales = $472,000 + $49,000 = $521,000

Q: J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2018. The…

A: Deferred tax asset The amount of taxes that is paid or carried forward but not yet identified in the…

Q: Apple Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Current  portion and deferred  portion  of income  tax provisions  are two  types of provisions in…

Q: Blossom Corporation began 2020 with a $57,040 balance in the Deferred Tax Liability account. At the…

A: Temporary difference / Future taxable amount = $434,000 Deferred tax liability at the end of 2020 =…

Q: For its current tax year, Ilex Corporation has ordinary income of $250,000, a short-term capital…

A: Tax is a liability that has to be paid to the government that acts as revenue for the government.…

Q: Brent Company's income statement for the year ended December 31, 2020 (considered as th r of…

A: Solution: taxable income = pretax financial income - excess revenue under accounting records -…

Q: Buffalo Company has the following two temporary differences between its income tax expense and…

A:

Q: Famous detergents 2019 income statement showed pretax accounting income of 1,500,000. To compute…

A: Deferred tax can be future tax liability or asset for an organisation with respect to differences…

Q: Marigold Company reports pretax financial income of $72,000 for 2020. The following items cause…

A: Compute taxable income and income taxes payable for 2020.

Q: Sherrod, Inc., reported pretax accounting income of $82 million for 2021. The following information…

A: SOLUTION 1- EVENT PARTICULARS AMOUNT HINT   PRE TAX ACCOUNTING INCOME (AS GIVEN) 82   B ADD…

Q: J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $376,000 in 2021. The…

A: Income tax is the kind of tax, which the government imposes on the income generated through…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A:

Q: J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2021. The…

A: Given information is: J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of…

Q: ABC Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Solution: Taxable income for 2020 = Pretax financial income - Tax exempt interest - Taxable…

Q: The following information is taken from Brilliant Company’s 2020 financial records: Pretax…

A: Deferred tax assets (P24500 * 32%) = P7,840