Reference no: EM132992272
Question -
During the year 2020, Rathalos Company had current tax expense of P300,000, deferred tax asset of P64,000 and a deferred tax liability of P175,000. It is ascertained that the temporary difference that give rise to the deferred tax asset will reverse in 2021 while the temporary difference that give rise to a deferred tax liability will reverse in 2022. Tax rate are as follows: 2020 - 30%; 2021 - 32%; and 2022 - 35%. What is the accounting income?
On December 31, 2014, South Company has revalued a property and has recognized the increase in the revaluation in the financial statements. The carrying amount of the property was P6,000,000 and the revalued amount was P10,000,000. However, the tax base of the property was only P8,000,000. The income tax rate is 30%. What is the deferred tax asset or liability on December 31, 2014?
On January 1, 2020, Bearwin Company bought an asset for P1,000,000 to be depreciated using the sum of years' digits for 5 years with zero residual value. However, for tax purposes, Bearwin depreciated the asset using straight-line basis. Tax rate effective in 2020 was 32% and 30% in the future years. What is the deferred tax asset/liability to be recognize in 2020?
On June 1, 2020, Rathian Company received P432,000 cash from an operating lease for 3 years. The effective tax rates are as follows: 2020 - 32%; 2021 - 35%; 2022 - 30%; and 2023 - 34%. What is the deferred tax asset to be recognized on December 31, 2020?
Noy Company had a deferred tax liability due to a temporary difference at the beginning of 2020 related to excess depreciation of P600,000. In December 2020, a new income law is enacted that increases the income tax rate from 25% to 30%, effective January 1, 2022. The future taxable amount related to the temporary difference is to be reversed by P300,000 for 2021 and P300,000 for 2022. What is the amount of increase or decrease in the deferred tax liability on December 31, 2020?
For the year ended December 31, 2020, Marcus Company paid taxes of P300,000. Marcus had an accounting income before tax of P1,200,000. The current tax rate was 30% and is expected to change to 32% in the future years due to a new law passed. During the year, Marcus also reported deferred tax liability of P70,000 which is attributable to an accrued income and a deferred tax asset which is due to a difference in depreciation charges. In the accounting books, Marcus reported depreciation expense of P200,000. What depreciation expense should be reported in the income tax returns?
On January 1, 2016, Easy Company acquired an equipment for P8,000,000. The equipment is depreciated using straight line method based on a useful life of 8 years with no residual value. On January 1, 2019, after 3 years, the equipment was revalued at a replacement cost of P 12,000,000 with no change in the useful life. The pretax accounting income before depreciation for 2019 is P10,000,000. The income tax rate is 30% and there are no other temporary differences at the beginning of the year. What is the deferred tax liability on December 31, 2020 arising from revaluation?
Dunn Company reported P900,000 income before provision for income tax during the current year. To compute the provision for income tax, the following data are provided: Rent received in advance - 150,000; Interest income on time deposit - P200,000; Depreciation deducted for income tax purposes in excess of depreciation for financial statement purposes - P100,000; Estimated tax payment in the current year - P125,000; and Income tax rate - 30%. What amount of total tax liability should be reported at year-end?