Please answer in good accounting form. Thankyou Problem 1:JAY Co. reported net income for the current year 2021 at P2,395,000 before taxes. Included in the deteminationof the said net income were:Non-deductible expensesAccrued warranty expensesRental payments made in advanceAdvance collections from customersP 319,200P 54,000P 210,000P 171,500P 125,800P 65,000Non-taxable incomeProvision for probable lossesThe income tax rate is 30% and is not expected to change in the future.Required:1. How much is the current tax expense?2. How much is the total tax expense?3. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?

The income tax is levied on the taxable income. The entity pays taxes to the government. The income…

Answered: Problem 3: EL Co. reported net income…

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 12P

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Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax income from continuing operations (of which revenues are 295,000), the following items are included in this pretax income: Colts taxable income totals 93,000 in 2019. The difference between the pretax financial income and the taxable income is due to the excess of tax depreciation over financial depreciation on assets used in continuing operations. At the beginning of 2019, Colt had a retained earnings balance of 310.000 and a deferred tax liability of 8,100. During 2019, Colt declared and paid dividends of 48,000. It is subject to tax rates of 15% on the first 50,000 of income and 30% on income in excess of 50,000. Based on proper interperiod tax allocation procedures, Colt has determined that its 2019 ending deferred tax liability is 14,100. Required: 1. Prepare a schedule for Colt to allocate the total 2019 income tax expense to the various components of pretax income. 2. Prepare Colts income tax journal entry at the end of 2019. 3. Prepare Colts 2019 income statement. 4. Prepare Colts 2019 statement of retained earnings. 5. Show the related income tax disclosures on Colts December 31, 2019, balance sheet.
Problem 2: KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the determination of the said net income were: Current tax rate 30% P 84,000 P 205,000 Non-deductible expenses Non-taxable income At the beginning of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating Future taxable amount P 1,110,000 P 567,000 At the end of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating P 720,000 P 632,000 Required: 9. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? 10. What is the total deferred tax liability to be presented in the 2021 Statement of Financial Position?
JAY Co. reported net income for the current year 2021 at ₱2,395,000 before taxes. Included in the determinationof the said net income were:Non-deductible expenses ₱ 319,200Accrued warranty expenses ₱ 54,000Rental payments made in advance ₱ 210,000Advance collections from customers ₱ 171,500Non-taxable income ₱ 125,800Provision for probable losses ₱ 65,000The income tax rate is 30% and is not expected to change in the future. Required:1. How much is the current tax expense?2. How much is the total tax expense?3. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?
JAY Co. reported net income for the current year 2021 at ₱2,395,000 before taxes. Included in the determinationof the said net income were:Non-deductible expenses ₱ 319,200Accrued warranty expenses ₱ 54,000Rental payments made in advance ₱ 210,000Advance collections from customers ₱ 171,500Non-taxable income ₱ 125,800Provision for probable losses ₱ 65,000The income tax rate is 30% and is not expected to change in the future. Required: 4. What is the total deferred tax liability to be presented in the 2021 Statement of Financial Position?5. Assuming that the expected income tax rate for the following year is 32%, what is the total taxexpense?6. Assuming that the expected income tax rate for the following year is 32%, what is the total deferredtax liability?
x Company reports the following pretax income (loss) for both book and tax purposes. Year. Pretax income tax rate 2018 120,000 20% 2019 93,000 20% 2020. (82,000) 25% 2021 110,000 25% The tax rates listed were enacted by the beginning of 2018 Prepare the journal entries for years 2018-2021 to record income tax expense (benefit) and income taxes payable and the tax effects of the loss carryforward assuming that based on the weight of available evidence it is more likely than not that one half of the benefits of the loss carryforward will not be realized.
A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% 1. How much is the taxable income?A. 950,000B. 750,000C. 850,000D. 700,0002. How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000Thank you.
KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the determination of the said net income were: 30% P 84,000 P 205,000 Current tax rate Non-deductible expenses Non-taxable income At the beginning of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating Future taxable amount P 1,110,000 P 567,000 At the end of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating P 720,000 P 632,000 Required: 9. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? 10. What is the total deferred tax liability to be presented in the 2021 Statement of Financial Position?
KAY Co. reported net income for the current year 2021 at ₱4,180,000 before taxes. Included in the determinationof the said net income were:Current tax rate 30%Non-deductible expenses ₱ 84,000Non-taxable income ₱ 205,000At the beginning of the year:Cumulative temporary difference creating future deductible amount ₱ 1,110,000Cumulative temporary difference creating Future taxable amount ₱ 567,000At the end of the year:Cumulative temporary difference creating future deductible amount ₱ 720,000Cumulative temporary difference creating ₱ 632,000 Required:7. How much is the current tax expense?8. How much is the total tax expense?9. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?10. What is the total deferred tax liability to be presented in the 2021 Statement of Financial Position?
Maru Mi Company had Taxable Income amounting to P750,000 before considering the following information for taxable year 2021:P 90,000 Net Operating Loss Carry-Over P 8,000 Excess MCIT Carry-OverP 15,000 Creditable Withheld Taxes at SourceP 40,000 Quarterly Tax PaymentsP 5,000 Excess Prior Year Tax CreditsHow much is the Income Tax still payable or due?
A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% Required: 1. How much is the taxable income?2. How much is the accounting income subject to tax?3. How much is the permanent difference?4. How much is the net temporary differences?
Bestlook Company provided the following information for its first year of operatic December 31, 2019 in connection with the preparation of it income tax return: Accounting income Nondeductible expenses P8,000,000 400,000 600,000 Nontaxable revenue Deferred income on installment sales included in financial income but taxable in 2020 900,000 200,000 600,000 Doubtful accounts recorded Financial depreciation Tax depreciation Estimated warranty cost accrued in 2019 but not deductible for tax purposes until paid Income tax rate (current and future) a. How much is the current tax expense? 700,000 200,000 35% b. How much is the deferred tax asset? c. How much is the deferred tax liability? d. How much is the total tax expense?
A company reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year Pretax Income (Loss) Tax Rate 2018 $142,000 17% 2019 94,000 17 2020 (208,800) 22 2021 318,500 22 In 2021, what amount of income tax payable should be reported for the company, assuming the loss can carry forward?

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