Pretax accounting income is $206,000. Depreciation for tax is $111,000; depreciation for accounting is $29,000. Bad debt expense for tax is $12,000; bad debt expense for accounting is $9000. A fine for pollution of a river was imposed by the state of Kentucky for $7000. The tax rate is 20%.

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Q: non-deductible SEC penalty. is 21%. Calculate the effective calculations.

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Q: ABC’s pre-tax financial income is P1,800,000. Current income tax rate is 30%. In ABC Company’s books…

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Q: Which account is the difference and how? saved?

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A:

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Q: Provie to the question is correct

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Q: Assume the following: Single filing status. • Total Income of $100,000 . . . . . Adjustments of…

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A: Tax is the amount which is to be paid by an individual or entity on the taxable income.

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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.