How much should Igado Company report as deferred tax asset

Assignment Help Accounting Basics
Reference no: EM133072636

Question - The following information is taken from Igado Company's 2020 financial records: Pretax accounting income- P1,500,000 Accrued warranty in excess of actual warranty expenditures- P24,500 Excess tax depreciation- P45,000 Taxable income- P1,479,500 The temporary differences were created entirely in 2020. The future deductible amount is expected to reverse in 2021 and the future taxable amount will reverse in equal amounts in the next three years. Tax rates are: 30% in 2020; 32% in 2021; 34% in 2022 and 35% in 2023. How much should Igado Company report as deferred tax asset and deferred tax liability, respectively at December 31, 2020?

Reference no: EM133072636

Questions Cloud

What is the maximum profit per share : You sell 1 call option on ABC stock with an exercise price of $155.00. You were paid $14.00 for this call option.
How much is the income tax payable at the end : If the company pays income taxes amounting to P100,000 during the year, how much is the income tax payable at the end of 2020
How much potential value is created : 1. You are considering a project that offers up the following possible payout with an opportunity cost of 20%.
Why do companies forecast exchange rates : Why do companies forecast exchange rates?
How much should Igado Company report as deferred tax asset : Tax rates are: 30% in 2020; 32% in 2021; 34% in 2022 and 35% in 2023. How much should Igado Company report as deferred tax asset
Government of the bahamas : The Government of the Bahamas introduced a new VAT which took effect from January 1, 2015. Since this time the VAT rates have increased to provide additional re
Make the Sales ledger control account for the month ended : The following balances were extracted from the books of sisto Ltd. for the month of April 2020: Make the Sales ledger control account for the month ended 30
How many metres of fabric should ABC purchase in January : If ABC desires 50% in the ending direct materials inventory, how many metres of fabric should ABC purchase in January
How syndicated loans are used in international markets : -Compute the bid/ask percentage spread for Mexican peso in which the ask rate is 20.6 New peso to the dollar and the bid rate is 21.5 New peso to the dollar.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd