Please answer Number 14 Items 10 to 14:T Company reports the following revenues and expenses in its pretax financial income for theyear ended December 31, 2003:RevenuesExpensesPretax financial incomeP229,600(160,100)P 69,500The revenues included in pretax financial income are the same amount as the revenuesincluded in the company's taxable income. A reconciliation of the expenses reported forpretax financial income to the expenses reported for taxable income, however, reveals fourdifferences:a. Depreciation deducted for financial reporting exceeded depreciation deducted for incometaxes by P11,000.b. Percentage depletion deduction for income taxes exceeded depletion deducted forfinancial reporting by P15,600.c. Warranty costs deducted for income taxes exceeded warranty expenses deducted forfinancial reporting by P8,900.d. Legal expense of P9,800 was deducted for financial reporting, it will be deducted forincome taxes when paid in a future year.The company expenses its percentage depletion to exceed its cost depletion in each of thenext 5 years by the same amount as in 2000. At the end of 2000, the other three expensesare expected to result in total future taxable or deductible amounts as follows:TotalsFuture taxable amountsDepreciation expense differenceP63,000Future deductible amountsWarranty expense differenceLegal expense difference48,4009,800At the beginning of 2003, the company had a deferred tax liability of P22,200 related to thedepreciation difference and a deferred tax asset of P17,190 related to the warrantydifference. The income tax rate for 2003 is 35%, but in 2002 Congress enacted a 30% ratefor 2004 and thereafter.P65,8001r18,900.ucT IS uie uelemeu lax liabmcyD17 AC1...ow muc20032(C) P19,400(u) rzu,00014. How much is the net income after income tax provision at December 31, 2003?(b) P46,470(a) P69,500(c) P50,040(d) P65,930 C

It is the income earned by an entity after incurring all the expenses. It is the net revenue left…

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

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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...

See similar textbooks

Similar questions

15. Elf Company prepared the following reconciliations of its pretax financial statement income to taxable income for the year ended December 31, 2000, its first year of operations: Pretax financial income Nontaxable interest received P1,600,000 ( 50,000) Long-term loss accrual in excess of deductible amount 100,000 Depreciation in excess of financial statement income ( 250,000) P1400.000 Taxable income Assume the income tax is 32%, what amount should Elf report as income tax expense current portion of its 2000 income statement? (a) P416,000 (b) P448,000 (c) P496,000 (d) P512,000 B
Refer to RE5-1. Prepare a single-step income statement for Brandt Corporation for the current year.
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.
Tiepare vVITgm E18-18 Calculating Intraperiod Income Taxes EyeBeam Corporation reports the following pretax accounting (and LO 18.6 taxable) income items during 2019: Income from continuing operations Loss from operations of a discontinued division Gain from the disposal of the discontinued division $ 90,000* (10,000) 25,000 *Of this amount, revenues are $320,000 and expenses are $230,000. Required: 1. Prepare the journal entry necessary to record the 2019 intraperiod income tax allocation in regard to the pre- ceding information. Assume a tax rate of 15% on the first $40,000 of income and a rate of 30% on income in excess of $40,000. Prepare EyeBeam's 2019 income statement. 2.
Problem 16-2 (ACP) Zeus Company reported pretax financial income of P8,000,000 for the year ended December 31, 2021. The taxable income was P9,000,00. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 25% and Zeus Company made estimated tax payment of P1,000,000 during the current year. Required: a. Prepare journal entries relating to income tax for 2021. b. Compute the total income tax expense for 2021.
Title Use the information for Sorpon Corporation in E18-6, and assume that the company reports accounting. Description Use the information for Sorpon Corporation in E18-6, and assume that the company reports accounting income of $180,000 in each of 2012 and 2013, and no reversing differences other than the one identified in E18-6. In addition, assume now that Sorpon Corporation was informed on December 31, 2012, that the enacted rate for 2013 and subsequent years is 35%. In BE Sorpon Corporation purchased equipment very late in 2011. Based on generous capital cost allowance rates provided in the Income Tax Act, Sorpon Corporation claimed CCA on its 2011 tax return but did not record any depreciation as the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts of $25,000 in 2012, $30,000 in 2013, and $40,000 in 2014. Sorpon s accounting income for 2011 is $200,000 and the tax rate is 40% for all years. There are no future tax…
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.
11. Ace Company had a pretax accounting income of P5,000,000 for its first year of operations. The following differences are noted between accounting income and taxable income: 1) Nondeductible expenses - 200,000; 2) Nontaxable revenue - 500,000; 3) Gross income on installment sales reported in accounting income but not in taxable income - 1,000,000; 4) Provision for doubtful accounts - 100,000; and 5) Income tax rate - 30%. COMPUTE THE FOLLOWING: 1. Accounting income subject to tax; 2) Taxable income; 3) Total income tax expense; and 4) Current tax expense.
Interperiod Tax Allocation Quick Company reports the following revenues and expenses in its pretax financial income for the year ended December 31, 2013: Revenues 229,600 Expenses (160,100) Pretax financial income 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: 1. Depreciation deducted for financial reporting exceeded depreciation deducted for income taxes by $11,000. 2. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by 15600. 3. Warranty costs deducted for income taxes exceeded warranty expenses deducted for financial reporting by 8900. 4. Legal expense of $9,800 was deducted for financial reporting; it will be deducted for income taxes when…
Interperiod Tax Allocation Quick Company reports the following revenues and expenses in its pretax financial income for the year ended December 31, 2013: Revenues 229,600 Expenses (160,100) Pretax financial income 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: 1. Depreciation deducted for financial reporting exceeded depreciation deducted for income taxes by $11,000. 2. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by 15600. 3. Warranty costs deducted for income taxes exceeded warranty expenses deducted for financial reporting by 8900. 4. Legal expense of $9,800 was deducted for financial reporting; it will be deducted for income taxes when…
Part 1XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:Pretax financial income € 750,000Estimated expenses deductible for taxes when paid 1,200,000Extra depreciation (1,350,000)Taxable income € 600,000 Estimated warranty expense of €800,000 will be deductible in 2019, €300,000 in 2020, and €100,000 in 2021. The use of the depreciable assets will result in taxable amounts of €450,000 in each of the next three years. Instructions (a) Prepare a table of future taxable and deductible amounts.(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, assuming an income tax rate of 40% for all years.
( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows; Pertax financial income $1170000 Estimated litigation expensense 2950000 Installment sales (2360000) Taxable income 1760000 ( crane co at the end of 202-itsfirst year of of operations prepared a reconciliation between pertax financial income and taxable income as follows; Pertax financial income $1170000 Estimated litigation expensense 2950000 Installment sales (2360000) Taxable income 1760000 The estimated litigation expense of $2950000 will be deductible in 2022 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of 1180000 in each of the next two years. The estimated libility for litigation is classified as noncurrent and the…