9. Stone Co. began operations in 20x1 and reported P225,000 in income before income taxes for the year. Stone's 20x1 tax depreciation exceeded its book depreciation by P25,000. Stone had nondeductible book expenses of P10,000 related to permanent differences. Stone's tax rate for 20x1 was 40%, and the enacted rate for years after 20x1 is 35%. In its December 31, 20x1, balance sheet, what amount of deferred income tax liability should Stone report?

9. Stone Co. began operations in 20x1 and reported P225,000 in income before income taxes for the year. Stone's 20x1 tax depreciation exceeded its book depreciation by P25,000. Stone had nondeductible book expenses of P10,000 related to permanent differences. Stone's tax rate for 20x1 was 40%, and the enacted rate for years after 20x1 is 35%. In its December 31, 20x1, balance sheet, what amount of deferred income tax liability should Stone report?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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The Bookbinder Company had 500,000 cumulative operating losses prior to the beginning of last year. It had 100,000 in pre-tax earnings last year before using the past operating losses and has 300,000 in the current year before using any past operating losses. It projects 350,000 pre-tax earnings next year. a. How much taxable income was there last year? How much, if any, cumulative losses remained at the end of the last year? b. What is the taxable income in the current year? How much, if any, cumulative losses remain at the end of the current year? c. What is the projected taxable income for next year? How much, if any, cumulative losses are projected to remain at the end of next year?
9. Stone Co. began operations in 20x1 and reported P225,000 in income before income taxes for the year. Stone’s 20x1 tax depreciation exceeded its book depreciation by P25,000. Stone had nondeductible book expenses of P10,000 related to permanent differences. Stone’s tax rate for 20x1 was 40%, and the enacted rate for years after 20x1 is 35%. In its December 31, 20x1, balance sheet, what amount of deferred income tax liability should Stone report?
4. For the year ended December 31, 20x1, Tyre Co. reported pretax financial statement income of P750,000. Its taxable income was P650,000. The difference is due to accelerated depreciation for income tax purposes. Tyre’s effective income tax rate is 30%, and Tyre made estimated tax payments during 20x1 of P90,000. What amount should Tyre report as current tax expense for 20x1?
EFG & Co. started its business at the beginning of the current year. By end of first year operations, EFG reported P6,000,000 financial income before income tax and P5,100,000 taxable income. Breakdown of the P900,000 difference revealed that P500,000 is a permanent difference and P400,000 is a future taxable amount. Enacted tax rate is 30%. How much is the total income tax expense? a. 1,800,000 b. 1,950,000 c. 1,530,00 d. 1,650,000
9. Stone Co. began operations in 20x1 and reported P225,000 in depreciation exceeded its book depreciation by P25,000. Stone income before income taxes for the year. Stone's 20x1 tax (AICPA Ctone Co. began operations in 20x1 and reported P225,000 in ecome before income taxes for the Stone's 20x1 tax year. depreciation exceeded its book depreciation by P25,000. Stone leo had nondeductible book expenses of P10,000 related to permanent differences. Stone's tax rate for 20x1 was 40%, and the enacted rate for years after 20x1 is 35%. In its December 31, 20x1, balance sheet, what amount of deferred income tax liability should Stone report? b. 10,000 a. 8,750 с. 12,250 d. 14,000 (AICPA)
For the year ended December 31, year 1, Tyre Co. reported pretax financial statement income of $7,500,000. Its taxable income was $6,500,000. The difference is due to accelerated depreciation for income tax purposes. Tyre's effective income tax rate is 30%, and Tyre made estimated tax payments during year 1 of $900,000. 1. What amount should be reported as current tax expense for the current year? a. 2,250,000 b. 1,950,000 c. 1,050,000 d. 1,350,000 2. What amount should be reported as total income tax expense? a. 1,350,000 b. 1,950,000 c. 1,050,000 d. 2,250,000 3. What amount of income tax payable should be presented at year end? a. 2,250,000 b. 1,350,000 c. 1,950,000 d. 1,050,000
Acer, Inc. reported a taxable income of P8,000,000 in its Form 1702 for its first year of operations, calendar year 2020. Below are the differences between taxable and financial income:· Excess tax depreciation over accounting depreciation: P500,000· Revenue collected for tax in excess of accounting revenue: P2,000,000· Tax penalties expensed in the income statement: P200,000Income tax rate is 30%. What is the NET DEFERRED TAX EXPENSE for 2020? a. 450,000 benefit b. 450,000 expense c. 510,000 benefit d. 510,000 expense
1. Pine Corporation’s books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?
Stone Company reported pre-tax book income of $700,000 in 20X1, the first year of operation. The tax depreciation exceeded the book depreciation by $90,000. The tax rate for 20X1 and all future years was 21%. What amount of deferred tax liability should Stone report in its December 31, 20X1, balance sheet? Select one: a. $6,300 b. $14,000 c. $18,900 d. $3,500
Lin Ltd. reported the following: Earnings (loss) Depreciation (assets have a cost of $360,000) CCA Non-deductible expenses Tax rate Taxable income Accounting earnings Permanent difference Accounting income subject to tax Temporary difference 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) Taxable income 20X7 20x7 (first year of operations) $98,000 $45,000 $60,000 $18,000 20x8 30% 2008 $(166,000) $ 45,000 $ 70,000 $18,000 30%
Please put all of the necessary information and computations for better understanding. Thanks ?
Chandler Corporation reported pre-tax book income of $1,900,000. Tax depreciation exceeded book depreciation by $600,000. During the year the Company capitalized $250,000 into ending inventory under §263A. Capitalized inventory costs of $150,000 in beginning inventory were deducted as part of cost of goods sold on the tax return. Assuming a tax rate of 21%, compute the company’s taxes payable or refundable.