A. At the end of the first year of operations, an entity had taxable temporary differences totaling P1,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P3,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P10,000,000. The tax rate is 25%. 1. What amount should be reported as current tax expense for current year? 2. What is the net deferred tax expense or benefit for the current year?

Q: For the year ended 30 June 20X4, Margorie Corp generated taxable operating income of CU 1,200,000 of…

A: Deferred Tax Liability: it records the fact that the company will pay more income tax in future due…

Q: An entity reported pretax financial income of P8,000,000 for the current year. The taxable income…

A: Total tax payable = taxable income x income tax rate = P7,000,000 x 30% = P2,100,000

Q: 11. The following differences enter into the reconciliation of financial income and taxable income…

A: Deferred tax Asset: It is the account  on a company's balance sheet  which  can reduce taxable…

Q: Eight independent situations are described below. Each involves future deductible amounts and/or…

A: Temporary difference refers to the difference between the carrying amount and tax base of an asset…

Q: or the year ended Dec. 31, 201X, CACA Co. reported pre-tax financial income of 9,500,000. Its…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: Pole Co. at the end of 2019, its first year of operations, prepared a reconciliation between pretax…

A: The deferred tax asset is the over-payment or payment of taxes in advance. It is created when a…

Q: For the year ended December 31, 2021, Irene Company reported pretax accounting income of P6,000,000.…

A: Total income tax expense for the current year = Pretax accounting income x tax rate

Q: Bee Corp. prepared the following reconciliation between book income and taxable income for the year…

A: Tax is a liability calculated on the income earned and paid to the government.

Q: The information below pertains to Mondavi Corporation: (a.) For the current year temporary…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: The information below pertains to Mondavi Corporation: (a.) For the current year temporary…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Bee Corp. prepared the following reconciliation between book income and taxable income for the year…

A: Current portion of provision for income taxes  = Taxable income x income tax rate

Q: An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations. The…

A: Deferred Tax The purpose of creating deferred tax which is any kind of excess amount which are…

Q: 1. In its first year of existence Aspen Corp. (a C corporation) reported income for tax purposes of…

A: As per protocol we are supposed to answer one question but you have asked two questions in a single…

Q: An entity reported pretax accounting income of P5,000,000 for the current year. The taxable income…

A: Solution: Total income tax expense for the current year = pretax accounting income * tax rate

Q: The pretax financial income of x Company differs from its taxable income throughout each of 4 years…

A: Given Information:  Non deductible expense - $29,300 Tax rate for 2021 - 20%

Q: An entity reported pretax financial income of P8.000,000 for the current year. The taxable income…

A: Income tax is paid on the taxable income. Taxable income is calculated after making the adjustments…

Q: For the current year ($ in millions), Centipede Corp. had $80 In pretax accounting Income. This…

A: Correct answer is A. $70 million

Q: What amount should be reported as current tax expense for the current year?   a. 2,250,000 b.…

A: 1. The current income tax would include the amount that would be payable based on taxable income.…

Q: 4. For the year ended December 31, 20x1, Tyre Co. reported pretax financial statement income of…

A: The question is related to the Accounting for taxes on income. Current tax expenses  is the amount…

Q: Assume that Puritan Corp. operates in an industry for which NOL carryback is allowed. Puritan Corp.…

A: Operating Loss Carry forward: The operating loss is considered as negative taxable income. When the…

Q: For the year ended December 31, 20x1, Tyre Co. reported pretax financial statement income of…

A: Formula: Current tax expense for 20x1 = Taxable income x tax rate

Q: Cris Company reported the following results for the year ended December 31, 2020, its first year of…

A: If Taxable income  is greater than  income  as per books of accounts then it will result  in…

Q: An entity reported pretax accounting income of P5,000,000 for the current year. The taxable income…

A: The tax expense is calculated on the taxable income instead of accounting income. The tax expense is…

Q: s of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences…

A: Step 1 Current tax to be reportable is equal to current tax + Deferred tax liability – Deferred tax…

Q: uring the 20x4 year, the Altomonte company presented a financial income before contributions of $…

A: Taxable Income refers to the amount of income or revenue earned by an entity or an individual in a…

Q: Grand River Corporation reported taxable income of $900,000 in 20X3 and paid federal income taxes of…

A: Taxable Income:-It is the income that is liable for taxation as per government prescribed rates.

Q: At the end of the year, the deferred tax asset account had a balance of $12 million attributable to…

A:

Q: 3. Leer Corporation's pretax income in 20x7 was P100,000. The temporary differences between amounts…

A: Leer Corporation's Pretax is 20x7 is P100,000  Leer's Effective Income tax Rate was 30% in 20x7 to…

Q: d. If a taxable temporary difference originates in 2022, it will cause taxable income for 2022 to…

A: Disclaimer:- Hence it is a multipart question we can answer only first three part. If you want…

Q: Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable…

A: Income tax is a liability of every individual toupee to the government on the basis of their taxable…

Q: For the year ended December 31, 20x1, An entity reported pretax financial statement income of…

A: Income Tax Expenses are reported in two components: 1. Current Portion 2. Deferred Portion

Q: 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial…

A: Pretax financial income = $1,359,000 Equipment Purchased = $1,260,000 Life = 5 years Depreciation on…

Q: 2. For the year ended December 31, 20x1, Mont Co.'s books showed income of P600,000 before provision…

A: Tax is the charge on the taxable income of a person that person is known as taxpayer. Taxable income…

Q: EZ, Inc., reports pretax accounting income of $427,000, but due to a single temporary difference,…

A: Deferred Tax: Deferred tax is an amount i.e. computed on the basis of tax liability on the income as…

Q: As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary…

A: Deferred Tax A deferred tax liability is described under IAS 12 as the amount of income tax due in…

Q: Umasa Corporation reported the following information for the current year: Pretax financial income…

A: Taxable income = Pretax financial income - exempt income + rent received in advance - depreciation =…

Q: Eight independent situations are described below. Each involves future deductible amounts and/or…

A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…

Q: As of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences…

A: Income tax payable = tax rate * taxable income  Taxable Income = pre tax income - TTD + DTD TTD=…

Q: 2. For the year ended December 31, 20x1, Mont Co.’s books showed income of P600,000 before provision…

A: Solution:- Calculation of the amount should Mont report at December 31, 20x1 as its income tax…

Q: Alvis Corporation reports pretax accounting income of $300,000, but due to a single temporary…

A: Since taxable income is less than pre tax income, a future taxable amount will occur once the…

Q: How much was the income tax payable for the first quarter?  How much was the income tax payable for…

A: Minimum corporate income tax (MCIT) in total income, beginning in the fourth tax year following the…

Q: KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the…

A:

Q: An entity was organized on January 1, 2021. The entity had pretax accounting income of P5,000,000…

A: >Most of the time, there exist a difference between Pretax financial income and taxable income as…

Q: Acer, Inc. reported a taxable income of P8,000,000 in its Form 1702 for its first year of…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Determine the tax base of the depreciable property as of the end of the year 2021.

A: Tax is the amount which is charged on the taxable income of the taxpayer. There are deductions like…

Q: The books of Chicago Company for the year ended December 31, 2020 showed pretax income of P720,000.…

A: Current tax liability shall be measured at the amount expected to be paid to the taxation…

Q: d. If a taxable temporary difference originates in 2022, it will cause taxable income for 2022 to be…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The…

A: Tax expenses for a particular year is reported as :   CURRENT TAX DEFERRED TAX

Q: For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income…

A: Income tax payable is the Amount of tax liability on taxable income which is to be paid.

Q: For the year ended December 31, 20x1, An entity reported pretax financial statement income of…

A: As per provisions of IFRS, an entity is required to create a deferred tax for the temporary…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.