Question: Kyle, Inc., owns 75 percent of CRT Company. During the current year, CRT reported net income of $400,000 but paid a total cash dividend of only $56,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent. a. $22,803. b. $26,043. C. $18,963. d. $42,003.
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- Choose the correct. Marc, Inc., owns 75 percent of SRS Company. During the current year, SRS reported net income of $415,000 but paid a total cash dividend of only $110,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 40 percent.a. $25,380b. $18,300c. $22,140d. $41,340Marc, Inc., owns 75 percent of SRS Company. During the current year, SRS reported net income of $415,000 but paid a total cash dividend of only $110,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 40 percent.a. $25,380b. $18,300c. $22,140d. $41,340ces Kyle, Incorporated, owns 75 percent of CRT Company. During the current year, CRT reported net income of $680,000 but paid a total cash dividend of only $120,000. Required: What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 21 percent. Multiple Choice O $37,950 $34,710 $30,870
- Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received 360,000 Tax depreciation in excess of financial statement amount 160,000 Rent received in advance 280,000 Corporate tax rate 30% What amount of total tax expense should be reported?a. 714,000b. 726,000c. 642,000d. 594,0003. Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows; Depreciation in the financial statements was P8,000 more than the tax depreciation. The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer’s effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of __________.3. Leer Corp.'s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows: Depreciation in the financial statements was P8,000 more than tax depreciation. • The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer's effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of b. 23,400 c. 21,900 d. 18,600 a. 26,400 (AICPA)
- Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received 360,000 Tax depreciation in excess of financial statement amount 160,000 Rent received in advance 280,000 Corporate tax rate 30% 2. What amount of current tax expense should be reported? a. 786,000b. 510,000c. 750,000d. 678,000Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received 360,000 Tax depreciation in excess of financial statement amount 160,000 Rent received in advance 280,000 Corporate tax rate 30% What amount of permanent difference between book income and taxable income existed at year-end?The entity made corporate estimated tax payment in the To compute the provision for income tax, the following Tax depreciation in excess of financial statement amount 160,000 Pecorino Company had pretax financial income of P2,500,000 3. What amount of income tax payable should be reported? 4. What amount of total tax expense should be reported? Problem 16-30 (IFRS) in the current year. amount of 180,000 during the current year. information was provided: 360,000 Interest income received Tax depreciation in excess of financial statement amount Rent received in advance Corporate tax rate 280,000 30% 1. What amount of permanent difference between book income and taxable income existed at year-end? a. 520,000 b. 360,000 c. 800,000 d. 280,000 2. What amount of current tax expense should be reported? a. 786,000 b. 510,000 c. 750,000 d. 678,000 000,00 a: 498,000 b. 606,000 c. 330,000 d. 570,000 4. What amount of total tax expense should be repor0 a. 714,000 b. 726,000 c. 642,000 d. 594,000 570
- Pecorino Company had pretax financial income of P2,500,000 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received 360,000 Tax depreciation in excess of financial statement amount 160,000 Rent received in advance 280,000 Corporate tax rate 30% What amount of income tax payable should be reported?a. 498,000b. 606,000c. 330,000d. 570,0008. An entity, Dominic Limited has profit after tax of $15 million for the year ended December 31, 2020. The following appropriations of profit have not been included in this amount: 1. Arrears of cumulative preference dividend for 2 years ended December 31, 2020 - $4M 2. Ordinary dividends - $5M 3. Preference share premium payable on redemption-appropriation of profit - $1M 4. Exceptional profit (net of tax) - $4M These share transactions occurred during the year ended December 31, 2020. The entity had 3 million ordinary shares of $1 outstanding at January 1, 2020: Date Ordinary shares issued/purchased Issued at $5 per share-$1 paid to date: entitled to participate in dividends to the Jan. 1 250,000 extent paid up. Apr. 1 600,000 Full market price S3 per share issue. Purchase of own shares at $3.50 per Jul. 1 (400,000) share. Required: Calculate basic earnings per share.Randal Corporation reports the following results for the current year: Gross profits on sales 81,000 Short-term capital gain 75,000 Long-term capital gain 10,000 Dividends from 25%-owned domestic corporation 25,000 NOL carryover from the preceding tax year 2,000 Operating expenses 90,000 Requirement: What are Randal's taxable income and income tax liability? Step 1. Begin by computing Randal's taxable income before special deductions, then calculate the taxable income. Step 2. Compute Randal's income tax liability