Complex Company reported the following information relating to income before the 30% tax for accounting purposes: 2021 P 2,000,000 2022 3,000,000 2023 4,000,000 2024 5,000,000 In 2021, Complex Company recognized doubtful accounts of P100,000. Such accounts were considered worthless or uncollectible in 2022, P40,000 and 2023, P60,000. Analysis of the tax and book records disclosed P120,000 in unearned rent income on December 31, 2021 that has been recognized as taxable income in 2021 when the cash was received. Also, on December 31, 2021, estimated warranty cost of P300,000 had been recognized as expense on the books in 2021 when the product sales were made but is not deductible for tax purposes until paid. The unearned rent income on December 31, 2021 is realized and the actual warranty payments were made as follows: Rent income per books Actual warrant payments 2022 P 40,000 P 20,000 2023 40,000 80,000 2024 40,000 200,000 1. The deferred tax asset of Complex Company as of December 31, 2023 is: 2. The total income tax expense of Complex Company for 2024 is:

Q: 8. In 2020, Ross Stores had reported a deferred tax asset of $146 million with no valuation…

A: Income tax expense refers to the process of determining the net amount of expense which is computed…

Q: Amazon LTD reported the following tax attributes for the taxation year ending December 31, 2020.…

A: The goal of refundable dividend tax on hand accounts ("RDTOH") is to account for tax paid to avoid…

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: YORMS Corp has the following data for the year ended December 31, 2021:…

A: The corporate tax rates apply to gross revenue obtained from sources within the Philippines for…

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

A: Income tax (IT) is a periodic expense for the firm which firm has to pay to the government based on…

Q: Prey Ltd accountant has estimated current tax of P50 000 based on the current profit. The income tax…

A: Tax expense is the aggregate of current tax and deferred tax. The distinction between the…

Q: Kingbird Corporation had the following tax information. Year   Taxable Income   Tax Rate   Taxes…

A: Statement for computation of the effect of the loss carryback Net Operating Loss Carryback…

Q: Complex Company reported the following information relating to income before tax for accounting…

A: a) As per IFRS any difference between the accounting base and taxable value shall be either…

Q: 1) The estimate of current tax made by Boo Ltd for the year ended 31 December 2019 was £15,000…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: JKL Corp reports net income on its 2019 financial statements before income tax expense of P400,000.…

A: Taxable income is the income in which tax is to be applied. Income tax expense is the income tax…

Q: T Company reports pretax financial income of P700,000 for 2020. The following caused taxable income…

A: There is a difference between taxable income and accounting income . Accounting income means income…

Q: ABC reported a pretax financial income of P6M for the year 2021. Among the items reported in the…

A: Financial income is the net income calculated as per profit and loss account. Taxable income is the…

Q: Q1) At 30 June 2019, Beta ltd had the following deferred tax balance: Deferred tax liability…

A: The tax computation for B Ltd is as follows:  The current tax liability as of June 30, 2020, is…

Q: INCOME TAXATION – TAX DUE TAX TABLE (Jan. 1, 2018 to Dec. 31, 2022) If taxable income is: Tax due…

A: Since there are multi sub-parts, we are going to solve first three for you. To get the remaining…

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: Conlin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid…

A: Workings:

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

A: Requirement a:

Q: Differences between pretax accounting income and taxable income were as follows during 2021:…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: Prepare the tax-related journal entries for 2019 to 2023. Brock Corp. believes that it will be able…

A: The tax - Related journal entries for 2019 to 2013   Accounting entry for the 2019 year.   Provision…

Q: STARS Company reported net income for the current year 2021 before taxes is P4,288,000. The…

A: Tax payable: The amount of tax required to be paid by the taxpayer every year is called tax payable.…

Q: PROBLEM 2 Complex Company reported the following information relating to income before the 30% tax…

A: Deferred tax asset or liability arises out of temporary differences between accounting income and…

Q: Willow Corp. (a C corporation) reported taxable income before the net operating loss deduction (NOL)…

A: Taxable Income: $100,000 NOL Carryover: $90,000 Amount of tax in 2020: ? Amount of NOL carryover in…

Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31,…

A: In Philippines interest for late filing of income tax return is levy at 12% per year from the date…

Q: Assume that The Bell Company operates in an industry for which NOL carryback is allowed. The Bell…

A: Income tax  refund  will be receivable of previous  2 year

Q: XYZ Company reported the following pretax income (loss) and related tax rates during the years…

A: a. Prepare the journal entries for the years 2019 and 2020 to record income taxes and the tax…

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

A: A deferred tax asset is an item on the balance sheet that results from an overpayment or advance…

Q: Harper Company began operations at the beginning of 2021. The following information pertains to this…

A: There are two types of difference which occur while calculating deferred tax asset/liability. One is…

Q: Bonita Inc. reports the following pretax income (loss) for both book and tax purposes. Pretax Year…

A: The income tax is an expense for business entity which is charged on the generated income for each…

Q: ABC Corporation's cumulative balance of RCIT, MCIT, taxes withheld, excess MCIT and excess…

A: Income tax- An income tax is a tax obligatory on persons or entities (taxpayers) in admiration of…

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

A: Balance Sheet- A balance sheet refers to the statement that displays all the obligations owed by a…

Q: 4. Sunland Company has the following two temporary differences between its income tax expense and…

A: The above mentioned question solution with calculation given in the following steps.

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: 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: x Company reports the following pretax income (loss) for both book and tax purposes.   Year.…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: t December 31, 2022 Mindoro Corporation’s taxable profit is P5,000,000. The following items are the…

A: Lets understand the basics. When there is temporary taxable differencce arise between the taxable…

Q: Bestlook Company provided the following information for its first year of operati December 31, 2019…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: 1.The Mosaic Company organized on January 2, 2021, had pretax accounting income of $8,000,000 and…

A: S. No. Particulars Debit($) Credit($) 1 Income tax expense $1,760,000      Deferred tax asset…

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

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Blossom Corporation reported the following results for its first three years of operation: 2020…

A: A deferred tax asset represents the overpayment or advance payment of taxes. It is the opposite of a…

Q: Bramble Inc. reports the following incomes (losses) for both book and tax purposes (assume the…

A: Income before tax means the earnings from which the tax is yet to be deducted.

Q: 15. ABC began operating on January 1, 2020. At the end of the first year of operation, ABC reported…

A: Prepaid rent.                                      P 1000000…

Q: Year Pretax Income (Loss) Tax Rate 2018 $183,000 17% 2019 69,000 17 2020 (206,800) 23…

A: Amount of Loss to be Reported for Year 2020= (206,800) Loss for year will be reported as 206,800 and…

Q: Wangerin Company reported the following pretax financial income (loss) for the years 2018–2022.…

A: A.Prepare the journal entries for the years 2020–2022 to record income tax expense, income taxes…

Q: Analysis of the assets and liabilities of Beef Brisket Corporation on December 31, 2019 disclosed…

A: Soluiton: Total deferred tax liability at Dec 31, 2019 = Reversible amounts*tax rates

Q: The following table pertains to C. J. Company: Year Taxable Income Tax Rate 2020 ($1,000,000) 25%…

A: The question is based on the concept to set off of loss with forward year profit for calculation of…

Q: A company reports the following pretax income (loss) for both financial reporting purposes and tax…

A: Solution: deferred tax asset at the end of 2020 =  loss carryforward * tax rate

Q: Required: What is the charge for income tax expense that will appear in the statement of profit or…

A: D. $8,000

Q: A company makes the following journal entry for 2021: Dr. Income Tax Expense…

A: The journal entries are prepared to keep the record of day to day transactions.

Q: Operating income and tax rates for C.J. Company’s first three years of operations were as follows:…

A: A deferred tax adjustment is prevalent where there is a temporary difference in the book value and…

Q: Marigold Corporation began 2020 with a s39.560 balance in the Deferred Tax Lability acount. At the…

A: Tax Rate = 20% Taxable Income for 2020 = $348,300

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.