Question

3. Unpaid expenses are shown in a company's statement of financial position as a current liability...

3. Unpaid expenses are shown in a company's statement of financial position as a current liability of $30,000. These expenses have already been deducted when computing accounting profit but will not be deducted for tax purposes until they are paid. Assuming that the company pays tax at 20%, the resulting deferred tax asset or liability is:

urgent question

Homework Answers

Answer #1

For any clarifications please comment, thank you.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A reconciliation of pretax financial statement income to taxable income is shown below for Chan Inc....
A reconciliation of pretax financial statement income to taxable income is shown below for Chan Inc. for the year ended December 31, 2021, its first year of operations. The income tax rate is 25%. Pretax accounting income (income statement) $ 500,000 Inventory impairments in excess of deductible amount 40,000 Depreciation in excess of financial statement amount (120,000 ) Taxable income (tax return) $ 420,000 The inventory impairments relate to Chan's Columbian tax return. The depreciation relates to Chan's U.S. tax...
Which of the following transactions would typically result in the creation of a deferred tax liability?...
Which of the following transactions would typically result in the creation of a deferred tax liability? a. Gross profit on installment sales is recognized currently in pretax financial income but is not taxable for income tax purposes until cash is received. b. Losses recognized in pretax accounting income from an investment in a subsidiary are accounted for by the equity method but not deductible for income tax purposes until the investment is sold. c. Rents received in advance are taxable...
17.       Which financial statement displays the revenues and expenses of a company for a period of...
17.       Which financial statement displays the revenues and expenses of a company for a period of time? Cash Flow Statement Statement of Profit or Loss Statement of Financial Position Statement of Shareholder’s Equity 18.       Accounting is the information system that___________ Measures business activity Communicate the results to decision makers Processes data into reports All of the above                                        19.      Which of the following should not be called ‘Sales’? Office fixtures sold Goods sold on credit Goods sold for cash Sale...
2. Simpson Inc. had a balance in the Deferred Tax Liability account of $420 on December...
2. Simpson Inc. had a balance in the Deferred Tax Liability account of $420 on December 31, 2015, resulting from depreciation temporary differences. Differences in tax and accounting depreciation for assets purchased on January 1, 2015 is as follows: YEAR FINANCIAL DEPRECIATION TAX DEPRECIATION 2015 $2,000 $3,400 2016 $2,000 2,600 2017 $2,000 1,200 2018 $2,000 800 $8,000 $8,000 In addition to the 2016 depreciation temporary difference, Simpson expensed $1,000 of warranty costs that will be deducted for tax purposes when...
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000....
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017. B) Buffalo Corporation began operations in 2017 and reported pretax financial income of $212,000 for the year. Buffalo’s tax depreciation exceeded its book depreciation by $33,000. Buffalo’s tax...
These are my financial accounting class question. 1. Assume the applicable statutory rate for Courtney Co....
These are my financial accounting class question. 1. Assume the applicable statutory rate for Courtney Co. is 40%. XYZ has income before taxes of $800,000. The Company's Income Statement includes a deduction for lobbying of 20,000 that is permanently not deductible for tax purposes and the tax return allows $150,000 more in depreciation deductions then what was an expense on the income statement. What is Courtney's net income if there are no discontinued operations? $472,000 $480,000 $532,000 $540,000 None of...
An extract from Leigh plc’s income statement for the year 31 December 20X2 is provided below:...
An extract from Leigh plc’s income statement for the year 31 December 20X2 is provided below: Revenue 140 Expenses (excluding tax) (106) Profit before tax 34 The notes to Leigh plc’s financial statements provide the following information: - Revenue for the year included a grant received from the government for an amount of £8 million, which is not taxable. - Expenses for the year included a restructuring expense of £10 million related to a restructuring plan announced by Leigh plc...
For each of the hypothetical circumstances listed below, determine whether the difference between book and tax...
For each of the hypothetical circumstances listed below, determine whether the difference between book and tax records represents a temporary timing difference resulting in either a deferred tax asset or a liability or represents a permanent timing difference. Also determine how each difference would be classified on the financial statements (current or non-current). Click on each cell and select from the list provided. Options to pick from: Temporary timing difference, asset, current Temporary timing difference, asset, non-current Temporary timing difference,...
Johnny Bravo Company began operations in 2016 and has provided the following information. 1. Pretax financial...
Johnny Bravo Company began operations in 2016 and has provided the following information. 1. Pretax financial income for 2016 is $100,000. 2. The tax rate enacted for 2016 and future years is 40%. 3. Differences between the 2016 income statement and tax return are listed below: 4. Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return amount to $2,000. Gross profit on construction contracts using the percentage-of-completion method for book purposes amounts to...
Geyser Company began operations in 2017 and has provided the following information. 1.Pretax financial income for...
Geyser Company began operations in 2017 and has provided the following information. 1.Pretax financial income for 2017 is $200,000. 2.The tax rate enacted for 2017 and future years is 40%. 3.Differences between the 2017 income statement and tax return are listed below: a.Warranty expense accrued for financial reporting purposes amounts to $10,000. Warranty deductions per the tax return amount to $4,000. b.Gross profit on construction contracts using the percentage-of-completion method for book purposes amounts to $184,000. Gross profit on construction...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT