Regine Company computed a pre-tax financial income of P6,000,000 for the year ended December 31, 2020. The following differences are noted between taxable and accounting income: ·         Nontaxable revenue: P600,000 ·         Nondeductible expense: P200,000 ·         Warranty provision accrued and expensed in 2020 but tax-deductible when paid: P300,000 ·         Excess tax depreciation over accounting depreciation: P250,000 ·         Excess of accounting revenue over tax revenue (timing difference): P200,000 Current tax rate for 2020 is 32% while tax rate for 2021 and forward is 30%. How much is the total tax expense?   a. 1,744,000 b. 1,699,000 c. 1,789,000 d. 1,792,000

Q: the end of 2020, Payne Industries had a deferred tax asset account with a balance of $65 million…

A: Solution 1: Payne Industries Journal Entries Event Particulars Debit (In Million) Credit (In…

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

A:

Q: On December 31, 2020, La Puendia Company reported the following: Income before tax for accounting…

A: Deferred tax: When accounting income is different from income under tax laws, it is called as…

Q: For the year ended December 31, 2021, Irene Company reported pretax accounting income of P6,000,000.…

A: Total income tax expense for the current year = Pretax accounting income x tax rate

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: a. Determine the taxable income and income tax payable for the year to 30 June 2020.

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: T Company reports pretax financial income of P700,000 for 2020. The following caused taxable income…

A: There is a difference between taxable income and accounting income . Accounting income means income…

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :…

Q: Bonita Company reports pretax financial income of $76,500 for 2020. The following items cause…

A: Taxable income: It is the income calculated as per the tax laws and on which the applicable tax…

Q: Callaway Corp. has a deferred tax asset account with a balance of $112,500 at the end of 2020 due to…

A:

Q: ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC…

A: The Total Incone tax expense will be P5,650,000.

Q: For the year 2020, Tonkatsu Company reported income tax expense of P110,000. Income tax payable at…

A: Calculation of amount of income tax paid during the year... Income tax payable for 2019::P90,000..…

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: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: Journal Entry: A journal entry refers to the logging of a operations into accounting items of…

Q: During 2021, its first year of operations, Baginski Steel Corporation reported a net operating loss…

A: The question is based on the concept of taxation accounting

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $65 million…

A: Introduction: Journal entries should not be used to record routine transactions such as customer…

Q: For the year ended December 31, 20x1, Tyre Co. reported pretax financial statement income of…

A: Formula: Current tax expense for 20x1 = Taxable income x tax rate

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

A: If Taxable income  is greater than  income  as per books of accounts then it will result  in…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: The following computations are done in the records of the Landmark Company.

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: Splish Company reports pretax financial income of $65,800 for 2020. The following items cause…

A: Taxable income for a corporation, we have to begin with the financial income as determined under…

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: 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: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…

A: Solution: Financial income subject to tax = taxable income - Excess book depreciation - Accrual of…

Q: t December 31, 2022 Mindoro Corporation’s taxable profit is P5,000,000. The following items are the…

A: Lets understand the basics. When there is temporary taxable differencce arise between the taxable…

Q: a) Determine the taxable income and income tax payable for the year to 30 June 2020. b.Determine by…

A: Income:   Income includes all the income that belong to the taxpayer, both taxable and non-taxable.…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A: Following are the answers to given questions

Q: At December 31, 2019, Sunland Company had a net deferred tax liability of $361,200. An explanation…

A: Deferred tax assets are the assets which would lead to reduction in tax liability in future years.…

Q: On December 31, 2020, Landmark Company reported the following: Income before tax for accounting…

A:

Q: The accounting profit before tax of Topsy Limited for the year ended 30 June 2021 is $1,600,000.…

A: Summary of the information provided in the question : current year accounting profit before taxes =…

Q: Buffalo Wings Company reports taxable income of P1,658,000 on its income tax return for the year…

A: taxable income of P1,658,000

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

A:

Q: s pretax financial income of $68,400 for 2020. The following items cause taxable income to be…

A: The answers have been mentioned below.

Q: Teal Company reports pretax financial income of $72,600 for 2020. The following items cause taxable…

A: Taxable income = Pretax financial income + Excess rent collected + Fine paid for pollution

Q: EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax…

A: Particulars Amount Accounting income per book  P560000 Permanent differences :    Interest…

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: osh Company reports pretax financial income of P700,000 for 2020. The following caused taxable…

A: Solution: Taxable income for 2020 = Pretax income - Depreciation on the tax return is greater than…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: a) Tax entries for 30th June 2020 are as follows: Date Particulars Debit Credit 30-06-2020…

Q: At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $90 million…

A: In order to prepare journal entry to record income taxes of Payne for 2021, two entry will be…

Q: For the year ended December 31, 2021, Jocelyn Company reported pretax financial income of…

A: Total Current tax expense for the current year = Pretax accounting income x tax rate

Q: For the year 2020, Tonkatsu Company reported income tax expense of P110,000. Income tax payable at…

A: Income tax liability for 2020 = income tax expense - ending deferred tax liability + beginning…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000…

A: Deferred tax can be a notional asset or liability to think about corporate pay tax assessment a…

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.