Extracts from trial balance at 31 March, 2019Current tax credit balance1,600,000Deferred tax liability5,200,000The balance on current tax represents the under/over provision of the tax liability for the yearended 31 March, 2018. The required provision for income tax for the year ended 31 March2019 is GHe38-8 million. The difference between the carrying amounts of the net assets of thecompany and their (lower) tax base at 31 March, 2019 is GHe 54 million. The rate of incometax is 25%.Required:Prepare a Statement of Profit or Loss Extract and Statement of Financial Position Extract for31 March, 2019.

Deferred Tax Assets / Liability: When the book accounting profit is more than taxable profit then it…

Current tax credit balance 1,600,000 Deferred tax liability 5,200,000 the halance on current tax represents the under/over provision of the tax liability for the nded 31 March, 2018. The required provision for income tax for the year ended 31 Ma 019 is GHe38-8 million. The difference between the carrying amounts of the net assets o ompany and their (lower) tax base at 31 March, 2019 is GHe 54 million. The rate of inc

Current tax credit balance 1,600,000 Deferred tax liability 5,200,000 the halance on current tax represents the under/over provision of the tax liability for the nded 31 March, 2018. The required provision for income tax for the year ended 31 Ma 019 is GHe38-8 million. The difference between the carrying amounts of the net assets o ompany and their (lower) tax base at 31 March, 2019 is GHe 54 million. The rate of inc

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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Balance Sheet Presentation Thiel Company reports the following deferred tax items at the end of 2019: Deferred TaxItem # AccountBalance Related Asset or LiabilityCreating the Deferred Tax Item 1 $6,700 debit Current asset 2 7,200 credit Current liability 3 10,600 debit Noncurrent asset 4 15,500 credit Noncurrent liability Required: Show how the preceding deferred tax items are reported on Thiel's December 31, 2019, balance sheet. THIEL COMPANYBalance Sheet (Tax Items)December 31, 2019 Noncurrent Liabilities Deferred Tax asset or liability $
Amount in excess of P490,000.00 taxable income is to be multiplied to_______to compute for the graduated tax due a. 30% b. 32% c. 35%
Buffalo Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. (a) Your Answer Correct Answer (Used) Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022. (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…
Q1. Taxable income and applicable tax rates for C.J. Company’s first four years are shown below. For each year, taxable income and pretax financial income are identical. In the table below, taxable income is before any consideration of NOL carryback and carryforward. The enacted tax rates were known at 1/1/2018. Taxable Income Enacted tax rate 2018 $200 20% 2019 ($300) 15% 2020 $340 25% 2021 $210 25% Now assume that C.J. opted to carryback its 2019 NOL and carryforward any unused NOL to future years. Complete the table below for 2018 through 2021 to show the amount of income tax payable to the IRS or the refund due from the IRS for each year. Put your answer in the table below. Show tax payable as a positive number and tax refund as a negative number. Year Tax…
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N1. Account
Parker Ltd had the following opening balances for the current year beginning 1 July 2020: Deferred tax asset (DTA) $24 000 Deferred tax liability (DTL) $15 000 If the company tax rate decreased from 30% to 25%, the adjusting journal entry would include: a. Dr DTL 3 000; Cr DTA 4 800 b. Cr DTL 4 000; Dr DTA 2 500 c. Cr DTA 4 000; Dr DTL 2 500 d. Cr DTL 4 800; Dr DTA 3 000 e. Cr DTA 1 200; Dr DTL 750
Grace Corporation's pretax fınancial income is $600,000 and taxable income is $550,000 for year 2020. Its beginning deferred tax liability account has a balance of $75,000. Its cumulative temporary differences for year-end 2020 is equal to $300,000 and will reverse and result in taxable amounts as follows: Year Таxable Amount $100,000 $ 75,000 $125,000 The tax rate is 30% for all 2021 2022 2023 years.
GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over 250,000 0 0 - P 250,000 400,000 0 20% P 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000 Nicanor, a Filipino Citizen residing in Manila, had the following data for the taxable year 2021: Gross income from rent of commercial spaces,net of P 60,000 withholding tax P 1,140,000 Dividend income From domestic corporation 50,000 From resident foreign corporation 60,000 From non-resident…
Estimated tax Information: made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated tax liabilities, assume was in existence in 2019 and that in 2019 it reported a tax liability of $500,000. During 2020, determined its taxable income at the end of each of the four quarters as follows: Quarter-end First Second Third Finally, assume that is not a large corporation for purposes of estimated tax calculations. (Do not round Intermediate calculations. Round your answers to the nearest dollar amount.) Installment Cumulative taxable income (loss) $ 480,000 e. Determine the quarters for which is subject to underpayment of estimated tax penalties. (Round "Annualization Factor" for Fourth quarter to 2 decimal places.) 1st quarter 2nd quarter 3rd quarter 4th quarter $ 1,100,000 $ 1,400,000 $ $ $ IS (1) Required cumulative payment (per quarter) under prior year tax method (2) Estimated tax payment 125,000 S 250,000 $ 375.000 $ 500.000 $ under…