Hopkins Co. at the end of 2010, its first year of operations, prepared a reconoliation between pretar financial income and taxable income as follows Pretax financial income $ 750.000 Estimated litigation expense 1,000,000 Extra depreciation for taves (1.500 000 5. 250000 The estimated Stigation expense of $1,000,000 will be deductible in 2011 when it is expected to be paid. Use of the depreciable assets will Taxable income result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years Income tax payable is Select one: a $75,000. b50. CC $150.000. d. $225,000.
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- Use the following information for questions 18 and 19. Hopkins Co. at the end of 2010, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 750,000 Estimated litigation expense 1,000,000 Extra depreciation for taxes (1,500,000) Taxable income $ 250,000 The estimated litigation expense of $1,000,000 will be deductible in 2011 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years. Income tax payable is Select one: a. $150,000. b. $0. c. $225,000. O d. $75,000.33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expenses Excess depreciation for taxes Taxable income 4,500,000 6,000,000 (9,000,000) 1,500,000 The estimated litigation expense of P6,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. Assuming no payment yet at the end of 2017? been paid for income taxes, what is the income tax payable a. shate b. 450,000 900,000 1,350,000 с. d. 34. Refer to previous problem, what is the amount of deferred tax asset recorded at December 31, 2017? а. 450,000Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 800,000 Estimated litigation expense 2,000,000 Installment sales (1,600,000) Taxable income $ 1,200,000 The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 40% for all years. 2. The deferred tax asset to be recognized is a. $240,000 current b. $240,000 noncurrent c. $800,000 current d. $800,000 noncurrent
- Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 800,000 Estimated litigation expense 2,000,000 Installment sales (1,600,00) Taxable income $ 1,200,000 The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 40% for all years. 3. The deferred tax liability - current to be recognized is a. $240,000 b. $480,000 c. $320,000 4. $640,000Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 800,000 Estimated litigation expense 2,000,000 Installment sales (1,600,000) Taxable income $ 1,200,000 The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 40% for all years. 1. The income tax expense is a. $240,000. b. $320,000 c. $360,000. d. $400,00032. Blossom Co. at the end of 2020, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $3550000 Estimated litigation expense 4550000 Extra depreciation for taxes (6540000) Taxable income $ 1560000 The estimated litigation expense of $4550000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $2180000 in each of the next 3 years. The income tax rate is 20% for all years.Income taxes payable is $0. $312000. $398000. $598000.
- 27. At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between accounting income and taxable income as reflected in the table below. The estimated litigation expense of P6,000,000 will be deductible in 2013 when it is expected to be actually paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. Assuming no payment has been paid for income taxes, what is the income tax payable at the end of 2012? Accounting income P 4,500,000 Estimated litigation expenses 6,000,000 Excess depreciation for taxes (9,000,000) Taxable income P1,500,000 а. РО b. P450,000 c. P900,000 d. P1,350,000At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between accounting income and taxable income as reflected in the table below. The estimated litigation expense of P6,000,000 will be deductible in 2013 when it is expected to be actually paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. Assuming no payment has been paid for income taxes, what is the income tax payable at the end of 2012? a. P0 b. P450,000 c. P900,000 d. P1,350,000XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation betweenpretax 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 € 600,000Estimated 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 €450,000in 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, andincome taxes payable for 2018, assuming an income tax rate of 40% for all years.
- Zeff Company prepared the following reconciliation for the · first year of operations: 1,600,000 Pretax financial income Nontaxable interest received Long-term loss accrual in excess of deductible amount Depreciation in excess of financial depreciation ( 50,000) 100,000 ( 250,000) 1,400,000 Taxable income (Tax rate is 30%) What amount should be reported as total income tax expense? a. 495,000 b. 480,000 c. 465,000 d. 420,000 What amount should be reported as deferred tax liability a. 90,000 b. 45,000 с. 75,000 d. 30,000 What amount should be reported as deferred tax asset? a. 30,000 b. 90,000 c. 45,000 d. 75,000Mabuhay Company prepared the following reconciliation of income per book with income per tax return for the year ended December 31, 2006Book income before tax, 750,000Add temporary difference: Construction revenue which will reverse in 2007, 100,000Deduct temporary difference: Depreciation expense which will reverse in equal amounts in each of the next four years, (400,000)Taxable income, 450,000The income tax rate is 35%.What amount should Mabuhay report in its 2006 income statement as the current provision for income tax?a. 157,500 b. 262,500 c. 297,500 d. 367,500Mathis co. at the end of 2016, its first year of operations, prepared reconciliation between pretax financial income and taxable income as follows: Pretax financial income 500,000 Estimated litigation expense 1,250,000 Installment sales (1,000,000) Taxable income 750,000 The estimated litigation expense of P1,250,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of P500,000 in each of the next two years. The estimated liability for litigation is classified as non-current and the installment accounts receivable are classified as P500,000 current and P500,000 noncurrent. The income tax rate is 30% for all years. The income tax expense is?