ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC asset's and liabilities are as follows: Deferred tax asset 12/31/2019-200,000 12/31/2018-500,000   Deferred tax liability 12/31/2019-420,000 12/31/2018-600,000 Income tax payable 12/31/2019-850,000 12/31/2018-200,000 \ The deferred tax liability was caused by accelerated depreciation and the deferred tax asset is for rentals received in advance. How much is ABC's total income tax expense?

Q: Pampie Company reported in the income statement for the current year pretax income of Php400,000.…

A: Tax expense is the amount of tax that the entity has paid on its taxable income.

Q: Following the net operating loss offset tax rules, the company appropriately applies the net…

A: This question presents a scenario where a company has a net operating loss in one year and a taxable…

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

A: Bad debts also called Uncollectible accounts expense is monetary expense which is due on creditor of…

Q: For the year ended 30 June 2022, Chilli Ltd had a taxable profit of $460 000. The following…

A: The journal entry for the difference in the deferred tax assets over year are debited, whereas,…

Q: The following facts relate to Kingbird Corporation. 1. Deferred tax liability, January 1, 2020,…

A: Income tax is the direct tax . It is a tax charged on the annual  income earned by the individual.…

Q: GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $900000…

A: Deferred Tax asset: Deferred tax asset is an assets that results from overpayment or advance payment…

Q: conciliation of pretax accounting income and taxable income: eretax accounting income Permanent…

A: Deferred tax liability refers to the sum of money the company needs to pay as income tax that has…

Q: NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021.…

A: Deferred tax asset: The deferred tax asset is created when the taxes to be paid as per income tax…

Q: Clal statements. Taxable income was S1,000,000 for 2022. A December 31, 2022, Miller Company had…

A: Solution: Income tax expense for the year = Current tax - Reversal of Deferred tax liability -…

Q: r the year ended December 31, 2019, Nelson Co.’s income statement showed income of $425,000 before…

A: Taxable income is the portion of a person's or a company's income that is used to calculate how much…

Q: Hurricane Ltd reports financial income of $100,000 for 2019. The following items cause taxable…

A: Income tax: Income tax refers to the direct tax levied on individual person or business and…

Q: Information for Kent Corp. for the year 2021:   Reconciliation of pretax accounting income and…

A: Deferred tax liability : As the name suggests it is a tax liability for the tax payer which is…

Q: Tommy Corp. reported a net deferred tax asset balance of $176,400 resulting from an estimated…

A: The objective of the question is to determine the change in the deferred tax asset balance due to a…

Q: On Jan. 1, 2020, Heat Company reported a deferred tax liability of Php1,000,000 and a deferred tax…

A: A deferred tax asset is an item on a company's balance sheet that reduces its taxable income in the…

Q: On the 30 June 2021 B Ltd had a balance of $198,000 in its deferred tax liability account and…

A: The accounting profit and taxable profit are different. There are certain events which are…

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

A:

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.