s of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences totaling P3,000,000, of which P1,000,000 relates to current items. PNR Co. also had deductible temporary differences totaling P1,500,000, of which P250,000 relates to current items. Pre-tax financial income for the year was P20,000,000. The income tax rate is 30%. How much should PNR Co. report as income tax payable on December 31, 2019?   5,550,000 5,775,000 6,000,000 6,450,000 answer not given

Q: In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first…

A: Deferred tax asset is like a prepaid tax the benefit of which will be received in future and a…

Q: Bramble Corp. had a Deferred Tax Asset account with a balance of $100,200 at the end of 2019 due to…

A: Journal entries refers to the process of systematically documenting or recording the financial…

Q: IT Company reported the following results for the year ended December 31, 2020, its first year of…

A:

Q: For the year ended December 31, 2020, Theodore Corporation reported a pretax financial income of…

A: Temporary difference =Rental received in advance = P8,000,000 - P6,000,000 = P2,000,000

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000. The…

A: Computation of Required balance and recognition of Deferred tax liability and Deferred tax Assets…

Q: For the year ended December 31, 2019, Nelson Co.’s income statement showed income of $435,000 before…

A: The income which is taxed as per the rules and principles of tax laws is called taxable income.

Q: Pole Co. at the end of 2019, its first year of operations, prepared a reconciliation between pretax…

A: The deferred tax asset is the over-payment or payment of taxes in advance. It is created when a…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $50 million…

A: Deferred Tax plus and postponed liabilities. Postponed liabilities (DTL) or postponed Tax plus (DTA)…

Q: For the year ended December 31, 2021, THREE Company reported pre-tax financial income of P7,500,000.…

A: Total Income Tax payable = Taxable income x tax rate = 6500000 x 30% = 1,950,000

Q: At the end of 2019, Vaughn Company has $181,600 of cumulative temporary differences that will result…

A: Year Amount Tax rate Amount 2020 $60,500 30% 18,150.00 2021 50,200 30% 15,060.00 2022…

Q: Integrity Company computed a pre-tax financial income of P2,200,000 for its first year of operations…

A: According to the given question, we are required to compute the total income tax expense in 2021.…

Q: Scarlet Company had pretax accounting income of P2,400,000 during 2020. Scarlet Company’s temporary…

A: Solution Given Pre tax accounting income of 2020 2,400,000 Sales made in 2019 recorded in…

Q: Larkspur Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Deferred tax Assets/liability: A deferred tax asset is created  from overpayment or advance payment…

Q: The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed pretax income of…

A: Taxable income = pretax income - excess of depreciation + excess of income  = 720000-32000+24000 =…

Q: At the end of 2019, Lucretia McEvil Company has $180,000 of cumulative temporary differences that…

A: a.    Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes,…

Q: Prepare Wicks’s income tax journal entry at the end of 2019. Assume a valuation allowance is not…

A: The taxable income of WC at the end of 2019 is $52,830. Its before tax financial income at the end…

Q: Anchor, inc, reports pretax financial income of $100,000 for 2020, S120,000 for 2021, and for 2022.…

A: Determination of taxable income    2020 2021 2022 Pretax Financial income $100,000 $120,000…

Q: Flint Corp. has a deferred tax asset account with a balance of $71,700 at the end of 2019 due to a…

A: Deferred tax asset in 2020 = Cumulative temporary difference for 2020 x Tax rate = $428,900 x 20% =…

Q: BC Corporation computed a pretax financial income of $6,000,000 for the year ended December 31,…

A: solution  given The tax rate for year 2019 = 32% we need to use the current tax rate for determining…

Q: n 2020, Smith Traders Incorporated and reported a net operating loss of $100,000. In 2021, before…

A: When an entity is not able to earn revenue than their expenses it is the condition of net operating…

Q: r the year ended December 31, 2019, Nelson Co.’s income statement showed income of $425,000 before…

A: Taxable income is the portion of a person's or a company's income that is used to calculate how much…

Q: On December 31, 2020, Knight Industries had a deferred tax asset account with a balance of $65…

A: Deferred tax is a notional asset or liability to reflect corporate income taxation on a basis that…

Q: Addison Co. has one temporary difference at the beginningof 2017 of $500,000. The deferred tax…

A: Prepare the necessary journal entry in 2017to adjust deferred taxes.

Q: On December 31, 2019, an entity reported a deferred tax liability of P600,000 and a deferred tax…

A: Deferred tax is calculated on the Temporary differences. Income tax is paid on the taxable income.…

Q: equired: 1. Prepare Wicks’s income tax journal entry at the end of 2019. Assume a valuation…

A: Income tax: A fee charged by the government of the country on the taxable income earned by the…

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The…

A: Net deferred tax assets on 12/31/2021 = (Taxable temporary differences - Deductible temporary…

Q: Four Square Services Corporation estimates that its 2021 taxable income will be $1,000,000. Thus, it…

A: Given:Estimated taxable income for 2021=$1000000Liability=$210000To compute:Minimum quarterly…

Q: Vaughn Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,300,000…

A: The question is based on the concept of Taxation Accounting

Q: ZMAN Company reported a taxable income of $400,000 for 2019. The cumulative taxable temporary…

A: The temporary difference is the difference between the taxable income and pretax income of a…

Q: EZ, Inc., reports pretax accounting income of $427,000, but due to a single temporary difference,…

A: Deferred Tax: Deferred tax is an amount i.e. computed on the basis of tax liability on the income as…

Q: As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary…

A: Deferred Tax A deferred tax liability is described under IAS 12 as the amount of income tax due in…

Q: As of December 31, 2019, its first year of operations, PNR Co. had taxable temporary differences…

A: Income tax payable = tax rate * taxable income  Taxable Income = pre tax income - TTD + DTD TTD=…

Q: Force Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: A journal entry is the first step—and an essential function—of the accounting process. Journal…

Q: The ABC Company has determined that its taxable income for the year 2021 is P3,000,000.   The…

A: Net deferred tax assets on 12/31/2021 = (Taxable temporary differences - Deductible temporary…

Q: The following information is taken from Igado Company’s 2020 financial records: Pretax accounting…

A: Deferred tax asset = Accrued warranty in excess of actual warranty expenditures X Tax rate for 2021)…

Q: Addison Co. has one temporary difference at the beginning of 2020 of $500,000. The deferred tax…

A: Calculate deferred tax liability.

Q: Sarasota Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Deferred taxes arise from temporary differences or the difference between the accounting income…

Q: KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the…

A:

Q: PT BCD has a deferred tax asset account with a balance of Rp300.000 at the end of 2018 due to a…

A: Cumulative temporary difference at the end of 2019 = Rp 1.000.000 Tax rate = 40%  Deferred tax asset…

Q: Wicks Corporation began operations on January 1, 2019. At the end of 2019, Wicks reported pretax…

A: Journal entry is a record of financial transaction in the books of accounts of a business. It…

Q: Vaughn Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,300,000…

A: Deferred Tax Liability:-DTL is a tax that becomes due but not yet paid. The deferred come when there…

Q: The books of Chicago Company for the year ended December 31, 2020 showed pretax income of P720,000.…

A: Current tax liability shall be measured at the amount expected to be paid to the taxation…

Q: Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable…

A:

Q: Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of…

A:

Q: At the end of 2019, its first year of operations, Beattie Company reported taxable income of $39,000…

A: Journal entries are prepared to record the financial and non-financial transactions of the business…

Q: On January 2021, Mercury Corporation is engaged in the sale of goods and services with net sales and…

A: Income tax is used to fund government services, pay debts, and give commodities to citizens.…

Q: On December 31, 2019, an entity reported a deferred tax liability of P600,000 and a deferred tax…

A: Increase in deferred tax liability = Ending deferred tax liability - Beginning deferred tax…

Q: Probi KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in…

A: Calculation of current tax expense = Taxable income x Tax rate   Calculation of Taxable expense…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.