11. Jan Stephanie Corporation filed its income tax return for calendar year 2022 and paid on time its income tax amounting to P100,000. Upon verification of its accounting records, it was disclosed that its deduction did not meet all the statutory requisites for deductibility. The corporation was duly notified of the said discrepancy through a Preliminary Assessment Notice (PAN). The income tax due after investigation amounts to P170,000. Failing to protest on time against the PAN, a formal letter of demand and assessment notice was issued on May 31, 2024, requiring payment of the assessment not later than July 15, 2024. How much amount is due on July 15, 2024? 12. Denmark Torralba did not file his income tax return for the calendar year 2022 which was due for filing on April 15, 2023. He was notified by the BIR of his failure to file the tax return, for which reason, he filed his tax return and paid the tax only after the said notice on July 15, 2024. Excluding compromise penalties, the tax due per return is P100,000. How much is the total amount due?

11. Jan Stephanie Corporation filed its income tax return for calendar year 2022 and paid on time its income tax amounting to P100,000. Upon verification of its accounting records, it was disclosed that its deduction did not meet all the statutory requisites for deductibility. The corporation was duly notified of the said discrepancy through a Preliminary Assessment Notice (PAN). The income tax due after investigation amounts to P170,000. Failing to protest on time against the PAN, a formal letter of demand and assessment notice was issued on May 31, 2024, requiring payment of the assessment not later than July 15, 2024. How much amount is due on July 15, 2024? 12. Denmark Torralba did not file his income tax return for the calendar year 2022 which was due for filing on April 15, 2023. He was notified by the BIR of his failure to file the tax return, for which reason, he filed his tax return and paid the tax only after the said notice on July 15, 2024. Excluding compromise penalties, the tax due per return is P100,000. How much is the total amount due?

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 4MC: Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the...

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Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the amount of financial depreciation, resulting in a book value of the depreciable assets of 24,500 for financial reporting purposes and of 20,000 for tax purposes at the end of 2019. In addition, Shadrach recognized a 3,500 estimated liability for legal expenses in the financial statements during 2019; it expects to pay this liability (and deduct it for tax purposes) in 2023. The current tax rate is 30%, no change in the tax rate has been enacted, and the company expects to be profitable in future years. What is the amount of the net deferred tax liability at the end of 2019? a. 300 b. 450 c. 1,050 d. 1,350
A corporation filed its Annual Income Tax Return for the taxable year 2018 on April 15, 2019 together with its required attachments such as the Audited Annual Financial Statements. On March 17, 2020, the company’s accountant discovered an error for excluding a sales amounting to Php7.5M which comprises a 30% under declaration of sales. What necessary action must be done by the company in relation to its discovery?
A corporation filed its Annual Income Tax Return for the taxable year 2018 on April 15, 2019 together with its required attachments such as the Audited Annual Financial Statements. On March 17, 2020, the company’s accountant discovered an error for excluding a sales amounting to Php7.5M which comprises a 30% under declaration of sales. 1. What necessary action must be done by the company in relation to its discovery? 2. Assume that the company was subjected to a BIR audit or was issued a Letter of Authority (LOA) prior to the amendment of its Annual Income Tax Return, is the company allowed to make any amendment?
Egolf Corporation failed to include $300,000 of taxable interest income on its 2021 calendar year Form 1120. The gross income reported on the return was $4.7 million, and the return was filed on February 20, 2022. Required: a. What is the last day on which the IRS may assess additional tax for Egolf's 2021 taxable year? b. Assume Egolf only reported $1 million in gross income on its 2021 calendar year return. What is the last date on which the IRS may assess additional tax for 2021? Complete this question by entering your answers in the tabs below. Required A Required B What is the last day on which the IRS may assess additional tax for Egolf's 2021 taxable year? Due date for assessment of additional tax is
Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 2021. On June 6, 2022, it filed an income tax return with a basic tax still due and payable for the fiscal year amounting to P500,000. Compute the total tax assessment to be paid, excluding compromise penalty. P653,603 P689,275 P653,438 P660,873
Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31, 2021. On June 6, 2022, it filed an income tax return with a basic tax still due and payable for the fiscal year amounting to P500,000. Compute the interest penalty to be imposed by the BIR. P28,603 P45,873 P28,438 P46,207
Sheridan Company reported the following results for the year ended December 31, 2020, its first year of operations: Income (per books before income taxes) $3343000 Taxable income 4466000 The disparity between book income and taxable income is attributable to a temporary difference, which will reverse in 2021. What should Sheridan record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 35% in 2020 and 30% in 2021? O $393050 deferred tax liability $336900 deferred tax liability $393050 deferred tax asset $336900 deferred tax asset
IT Company reported the following results for the year ended December 31, 2020, its first year of operations: Income (per books before income taxes)- P750,000 Taxable income-P1,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should IT record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 40% in 2020 and 35% in 2021? A.P157,500 deferred tax liabilityB.P157,500 deferred tax assetC.P180,000 deferred tax liabilityD.P180,000 deferred tax asset
For the year ended December 31, 2021, Irene Company reported pretax accounting income of P6,000,000. The taxable income was P7,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 30% and the entity made no estimated tax payment in the current year. What amount should be reported as total income tax expense for the current year? O 2,100,000 O 1,800,000 O 1,000,000 O 1,100,000
MI Company has been assessed of deficiency income tax of P1,000,000, exclusive of interest and surcharge for the 2018 taxable year, the tax hability has remained und despite the lapse of June 30, 2020, the deadline for the payment stated in the notice and demand issued by the Commissiones. The payment was made by the taxpayer on February 10, 2001 Compute for the following 1. Correct amount of surcharge 2. Correct amount of deficiency interest 3. Correct amount of deliquency interest 4. Total amount due on February 10, 2021
1. In 2021, Dunder Mifflin's warranty deduction for tax purposes exceeded its warranty expense for book purposes by $654. Its pretax financial income in 2021 was $42800, and its tax rate was 27%. What amount of deferred tax liability should be reported on Dunder Mifflin's 2021 balance sheet? Assume no prior deferred tax balance. Choose the closest answer (round to the nearest two decimal places). a. $654.00 b. $11556.00 c. $176.58 d. None; Dunder Mifflin reports a deferred tax asset on its 2021 balance sheet.
CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 1. Compute the taxable income