revenues in its 20x4 financial statements, of which P12,000 will 6. Scott Corp. received cash of P20,000 that was included in revenues in its 20x4 financial statements, of which P12.000 tuin not be taxable until 20x5. Scott's enacted tax rate is 30% 20x4, and 25% for 20x5. What amount should Scott report in its 20x4 balance sheet for deferred income tax liability? d. 3,600 a. 2,000 b. 2,400 с. 3,000 ICPA)

Gudubhai

Accounting income or loss for Aberdeen Corporation, following IFRS, is below: Year Accounting income/(loss) Tax rate percent Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 $160,000 250,000 80,000 (160,000) (380,000) 130,000 145,000 30 30 25 25 25 25 25 Assume that there were no permanent or temporary differences between accounting and taxable income. Required Prepare the tax-related journal entries for Year 3 to Year 7. Aberdeen Corporation believes that it will be able to use any loss carryforward in future years. Aberdeen Corporation will apply the available carryback provisions to the earliest years first. Include your calculations.

Beaver Dam Inc. (BDI) listed the following items to prepare a reconciliation between book and taxable income. GAAP net income before tax                   $700,000 Meal and entertainment expense              100,000 GAAP depreciation expense                      110,000 Depreciation expense for tax purposes     120,000 c.  Compute the net increase in BDI’s deferred tax assets or deferred tax liabilities for the year. d.  Prepare the journal entry to record taxes for the year.