* Problem 16-31 (IFRS) Lakeshore Company reported the following selected information for the current year: 9,700,000 300,000 Accounting income before tax Interest income on tax-exempt municipal bonds Depreciation claimed on the tax return in excess of financial depreciation Carrying amount of depreciable asset in excess of tax basis 800,000 Warranty expense reported on the income statement Actual warranty expenditures Income tax rate 500,000 200,000 50,000 30% At the beginning of current year, the entity reported deferred tax asset at zero and deferred tax liability at P90,000. 1. What is the current tax expense for the current year? a. 2,715,000 Б. 2,625,000 c. 2,655,000 d. 2,745,000 2. What is the total tax expense for the current year? a, 2,820,000 b. 2,730,000 c. 2,700,000 d. 2,550,000 3. What is the deferred tax liability at year-end? a. 240,000 b. 150,000 c. 210,000 d. 120,000 4. What is the deferred tax asset at year-end? а. 60,000 b. 45,000 с. 15,000 d. 75,000

* Problem 16-31 (IFRS) Lakeshore Company reported the following selected information for the current year: 9,700,000 300,000 Accounting income before tax Interest income on tax-exempt municipal bonds Depreciation claimed on the tax return in excess of financial depreciation Carrying amount of depreciable asset in excess of tax basis 800,000 Warranty expense reported on the income statement Actual warranty expenditures Income tax rate 500,000 200,000 50,000 30% At the beginning of current year, the entity reported deferred tax asset at zero and deferred tax liability at P90,000. 1. What is the current tax expense for the current year? a. 2,715,000 Б. 2,625,000 c. 2,655,000 d. 2,745,000 2. What is the total tax expense for the current year? a, 2,820,000 b. 2,730,000 c. 2,700,000 d. 2,550,000 3. What is the deferred tax liability at year-end? a. 240,000 b. 150,000 c. 210,000 d. 120,000 4. What is the deferred tax asset at year-end? а. 60,000 b. 45,000 с. 15,000 d. 75,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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Umasa Corporation reported the following information for the current year: Pretax financial income Income from exempt municipal bonds Rent received in advance P 9,000,000.00 2,000,000.00 1,500,000.00 Depreciation deduction for income tax purposes in excess of depreciation reported for financial reporting purposes Estimated tax payment for current year Income tax rate 1,000,000.00 500,000.00 30% 21. What amount of current tax liability should be reported at the year-end? B. P2,250,000 A. P1,750,000 C. P2,750,000 D. P2,850,000 22. What is the total tax expense? A. P2,700,000 B. P2,100,000 C. P2,250,000 D. P1,600,000
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.
[Fact Pattern #1] Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the current year, its first year of operations: Pretax financial income $160,000 Nontaxable interest received on municipal securities Long-term loss accrual in excess (5,000) of deductible amount 10,000 Depreciation in excess of financial statement amount (25,000) Taxable income $140,000 Zeff's tax rate is 40%. [1] ( Refers to Fact Pattern 1) In its current-year income statement, what amount should Zeff report as income tax expense – current portion? A. $52,000 B. $56,000 C. $62,000 D. $64,000
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PROBLEM 1 Xavier Company provided the following information for its first year of operations ended December 31, 2021 in connection with the preparation of its income tax return:Taxable income P 4,000,000Non-deductible expenses 200,000Non-taxable revenue 300,000Deferred income on installment saleincluded in financial income but taxable in 2022 450,000Doubtful accounts recorded 100,000Financial depreciation 300,000Tax depreciation 350,000Estimated warranty cost accrued in2021 but not deductible for tax purposes until paid…
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 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% Required: 1. How much is the taxable income?2. How much is the accounting income subject to tax?3. How much is the permanent difference?4. How much is the net temporary differences?
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E18-11 Multiple Tax Rates For the year ended December 31, 2019, Nelson Co.’s income statement showed income of $435,000 before income, tax expense. To compute taxable income, the following differences were noted: Income from tax-exempt municipal bonds $60,000 Depreciation deducted for tax purposes in excess of depreciation recorded on the books $120,000 Proceeds received from life insurance on death of an insured employee $100,00 Corporate tax rate for 2019 30% Enacted tax rate for future periods 35% Required: 1. Calculate taxable income and tax payable for tax purposes. 2. Prepare Nelson’s income tax journal entry at the end of 2019.
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