T Company reports the following revenues and expenses in its pretax financial income for the year ended December 31, 2003: Revenues Expenses Pretax financial income P229,600 (160,100) P 69,500 The revenues included in pretax financial income are the same amount as the revenues included in the company's taxable income. A reconciliation of the expenses reported for pretax financial income to the expenses reported for taxable income, however, reveals four differences: a. Depreciation deducted for financial reporting exceeded depreciation deducted for income taxes by P11,000. b. Percentage depletion deduction for income taxes exceeded depletion deducted for financial reporting by P15,600. c. Warranty costs deducted for income taxes exceeded warranty expenses deducted for financial reporting by P8,900. d. Legal expense of P9,800 was deducted for financial reporting, it will be deducted for income taxes when paid in a future year. The company expenses its percentage depletion to exceed its cost depletion in each of the next 5 years by the same amount as in 2000. At the end of 2000, the other three expenses are expected to result in total future taxable or deductible amounts as follows: Totals Future taxable amounts Depreciation expense difference Future deductible amounts Warranty expense difference Legal expense difference P63,000 48,400 9,800 At the beginning of 2003, the company had a deferred tax liability of P22,200 related to the depreciation difference and a deferred tax asset of P17,190 related to the warranty difference. The income tax rate for 2003 is 35%, but in 2002 Congress enacted a 30% rate for 2004 and thereafter.

what types of taxes are deductible in full or in part?

TB Problem 17-186 (Static) The following is an incomplete... The following is an incomplete pension spreadsheet for the current year for Sparky Corporation. Required: 1. Complete the pension spreadsheet. 2. Prepare the journal entries to record pension expense and funding of plan assets for the year. 3. Prepare the journal entry(ies) to record any gains or losses for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the pension spreadsheet. ($ in millions) debit (credit) PBO Plan Assets Prior Service Cost Net(Gain)Los8 Pension Expense Net Pension Cash Beginning balance 450 60 55 (Liability) or Asset (10) Service cost (85) Interest cost (45) Expected return on assets 55 (Gain) or loss on assets Amortization of: Prior service cost Net (gain) or loss Loss on PBO Contributions to fund Retiree benefits paid Ending balance (32) 40 (562) 3 (1) 54 89

In T1 General Tax Form, Total Income is reported on Line??

Which is a factor in determining federal income tax withheld?       A. Level of wages       B. Marital status       C. Number of dependents       D. Pay period       E. All of the above

Can you explain the difference between a deferred tax asset, a tax receivable, and a prepaid tax account?

The tax law refers to gross income, yet the term gross income is not found on Form 1040. Explain.

In Step 1 the income tax expense of $8,750,000 is correct. The deferred tax liability and income tax payable are incorrect. In Step 2 the net income is correct.

Expenditures currently deducted in the tax return but not included with expenses in the income statement until subsequent years create deferred tax liabilities. O True O False

Under what conditions can deferred tax assets be offset against deferred tax liabilities?