Accounting income or loss for Aberdeen Corporation, following IFRS, is below:Year Accounting income/(loss) Tax rate percentYear 1Year 2Year 3Year 4Year 5Year 6Year 7$160,000250,00080,000(160,000)(380,000)130,000145,00030302525252525Assume that there were no permanent or temporary differences between accounting and taxable income.RequiredPrepare the tax-related journal entries for Year 3 to Year 7. Aberdeen Corporation believes that it will be able to use any loss carryforward in future years.Aberdeen Corporation will apply the available carryback provisions to the earliest years first. Include your calculations.

To prepare the tax-related journal entries for Year 3 to Year 7, we need to calculate the income tax…

Answered: Required Prepare the tax-related…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 37P

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Barth James Inc. has the following deferred tax assets and liabilities: 12,000 noncurrent deferred tax asset, and 10,500 noncurrent deferred tax liability. Show how Barth James would report these deferred tax assets and liabilities on its balance sheet.
Nalad Corp. provided the following data related to accounting and taxable income: Pre-tax accounting income (financial statements) Taxable income (tax return) Income tax rate 20X8 $530,000 20X9 $505,000 305,000 730,000 38% 38% There are no existing temporary differences other than those reflected in these data. There are no permanent differences. Required: 1-a. How much tax expense would be reported in each year if the taxes payable method was used? Tax Expense 20X8 20X9 1-b. What is the implied tax rate? (Round your answers to 1 decimal place.) 20X8 20X9 Implied tax rate 96 % 2-a. How much tax expense would be reported using comprehensive tax allocation (liability method). Tax Expense 20X8 20X9 2-b. How much deferred income tax would be reported using comprehensive tax allocation (liability method).
1. What amount of permanent difference between book income and taxable income existed at year end?a. 520,000b. 360,000c. 800,000d. 280,0002. What amount of current tax expense should be reported? a. 786,000b. 510,000c. 750,000d. 678,0003. What amount of income tax payable should be reported?a. 498,000b. 606,000c. 330,000d. 570,0004. What amount of total tax expense should be reported?a. 714,000b. 726,000c. 642,000d. 594,000
The information below pertains to Mondavi Corporation: (a.) For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the following: Future Taxable or Carrying Amount (Deductible) Amount Tax Basis Buildings and equipment Prepaid insurance Liability-loss contingency $61,000, 000 $45,900, 000 $ 15,100,000 1,100,000 1,100,000 10, 100,000 (10,100,000) (b.) No temporary differences existed at the beginning of the year. (c.) Pretax accounting income was $310,000,000 and taxable income was $121,000,000 for the year and the tax rate is 30%. Required: Prepare one journal entry to record the tax provision for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
Answer the following question: Jason Ltd had the following pre-tax net earnings (loss): Year Taxable Income Tax Rate 20X3 (120000) 25% 20X4 720000 30% 20X5 880000 30% 20X6 (2600000) 30% 20X7 280000 35% 20X8 1000000 35% There have been no temporary differences between pre-tax accounting income and taxable income. In all years, the probability of loss carryforward use was low. For each year, prepare journal entries to record income tax expense (recovery). The entry in 20X7 is: Dr I/T Expense Cr I/T Payable $98000, Dr I/T Payable Cr I/T Expense $98000 Why is there two entries for $98000? Show how number was got as well.
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
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
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: 7. Net income for the year is?
The amount of net deferred tax asset/(liability) on January 1, 20x8 is The amount of net deferred tax asset/(liability) on December 31, 20x8 is Income tax expense – current for 20x8 is
Cris 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-P1,200,000The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should Cris 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?
Required: Total deferred tax liability- December 31, 20x6 Total deferred tax asset at December 31, 20x6 Current income tax expense for the year ended December 31,20x6 Total income tax expense for 20x6
independent problems: 1. ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC asset's and liabilities are as follows: Deferred tax asset 12/31/2019-200,000 12/31/2018-500,000 Deferred tax liability 12/31/2019-420,000 12/31/2018-600,000 Income tax payable 12/31/2019-850,000 12/31/2018-200,000 The deferred tax liability was caused by accelerated depreciation and the deferred tax asset is for rentals received in advance. How much is ABC's total income tax expense? 2. ABC Inc. began operations on July 1,2019. The company recognizes income from long term construction contracts under the percentage of completion method in its financial statements and under the cost recovery method for income tax purposes. Income under each are as follows: 2019 Cost recovery- P 0 % of completion- P 700,000 2020 Cost recovery- P 800,000 % of completion- P 1,280,000 2021 Cost recovery- P 1,350,000 % of completion- P 1,700,000 The income tax rate was 32% for…

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Required Prepare the tax-related journal entries for Year 3 to Year 7. Aberdeen Corporation believes that it will be able to use any loss carryforward in future years. Aberdeen Corporation will apply the available carryback provisions to the earliest years first. Include your calculations