Assume that Puritan Corp. operates in an industry for which NOL carryback is allowed. Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations:            2020 $ 353,000     2021   (596,000 )   2022   708,000         Puritan's tax rate is 37% for all years. Puritan elected a loss carryback.As of December 31, 2021. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback.   What did Puritan report on December 31, 2021, as the deferred tax asset for the NOL carryforward?

Q: Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of…

A: a.Record income tax expense, deferred income taxes, and income taxes payable for 2020.

Q: Bramble Corp. had a Deferred Tax Asset account with a balance of $100,200 at the end of 2019 due to…

A: Journal entries refers to the process of systematically documenting or recording the financial…

Q: the end of 2020, Payne Industries had a deferred tax asset account with a balance of $65 million…

A: Solution 1: Payne Industries Journal Entries Event Particulars Debit (In Million) Credit (In…

Q: Blossom Company deducts insurance expense of $171000 for tax purposes in 2021, but the expense is…

A: Question says that: Blossom company has deducted insurance expense of $171,000 for tax purpose of…

Q: sp Corporation has one temporary difference at the end of 2020 that will reverse and causedeductible…

A: Temporary difference is the difference between pretax financial income and the taxable income that…

Q: Ivanhoe Company has the following two temporary differences between its income tax expense and…

A: Income tax (IT) is a periodic expense for the firm which firm has to pay to the government based on…

Q: A publically traded corporation has $1,000,000 of pretax book income in both 2020 and 2021 before…

A: There can be differences between book tax and actual tax due to two main categories of reason. One…

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Tax liability = Taxable income x tax rate = $84,000 x 30% = $25,200

Q: At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000…

A: Income tax Payable: It refers to the amount which is required to be paid by an entity on the taxable…

Q: Assume that Firm ABC has revenues of $120,000 for both 2017 and 2018. It also has operating expenses…

A: Date Particulars Debit  Credit 31-12-2017 Income tax expense a/c Dr 48,000     To Income Tax…

Q: At December 31, 2020, Tojosa Corporation reported a deferred tax liability of $240,000 which was…

A: Lets understand the basics. When there is taxable temporary difference arise between the income as…

Q: The following facts relate to Duncan Corporation. 1.    Deferred tax liability, January 1, 2020,…

A:

Q: GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $900000…

A: Deferred Tax asset: Deferred tax asset is an assets that results from overpayment or advance payment…

Q: GinnyCo has pretax book and taxable income of $400,000 and reports a s100,000 income tax payable in…

A: Tax provision refers to the reporting year aggregate income tax expenses and it involves the foreign…

Q: Palmer Co. had a deferred tax liability balance due to a temporary difference at the beginning of…

A: Deferred tax is the income tax payable in the future due to timing differences. It can be a…

Q: Fashion Inc. is public Corporation reported the following results for its first thrce years of…

A: Net income after tax for 2019  $50000 - 30% x $50000 = $35000 for 2020, the concern has net loss of…

Q: Ajax Corporation had taxable income of $114,560 during 2021. Ajax used MACRS for tax purposes…

A: Accounting income and taxable income of business can be different due to some temporary differences…

Q: Ivanhoe Company has the following two temporary differences between its income tax expense and…

A: In Balance Sheet  Deferred tax asset 2022 = Deferred tax asset 2020 + Deferred tax asset 2021 +…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Total reversal amount = reverse in 2021 + reverse in 2022 + reverse in 2023 = $56200+61000 +66500 =…

Q: The following taxable income data is available for ACME Incorporated: Year Taxable Income Tax Rate…

A: Income statement- The Income Statement is one of a company’s heart fiscal statements that…

Q: obac Company reported an operating loss of $129,000 for financial reporting and tax purposes in…

A: Working Notes

Q: The pretax financial income of x Company differs from its taxable income throughout each of 4 years…

A: Given Information:  Non deductible expense - $29,300 Tax rate for 2021 - 20%

Q: Rich Goma Corporation failed to file its income tax return for the fiscal year ending August 31,…

A: In Philippines interest for late filing of income tax return is levy at 12% per year from the date…

Q: The following facts relate to Concord Corporation. 1. Deferred tax liability, January 1, 2020,…

A: Solution: Computation of Required balance and recognition of Deferred tax liability and Deferred…

Q: Cris Company reported the following results for the year ended December 31, 2020, its first year of…

A: If Taxable income  is greater than  income  as per books of accounts then it will result  in…

Q: ary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%,…

A: Deferred tax expense refers to the effect of income tax occured on the balance sheet of the company…

Q: Assume that Theodore Enterprises operates in an industry for which NOL carryback is allowed.…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: The pretax financial income of Truttman Company differs from its taxable income throughout each of 4…

A: a. Prepare journal entries to record income taxes for all 4 years as shown below:

Q: Tommy Corporation reported a pretax financial income of P5,000,000 for the year ended December 31,…

A: Temporary & Permanent Differences Temporary differences are the differences  between financial…

Q: CC corporation (a calendar-year  C corporation) has a net operating loss (NOL) carryover to 2021 in…

A: calculation of taxable income and tax rate are as follows.

Q: Bramble Corp. follows IFRS and began operations in 2020 and reported accounting income of $274,000…

A: Deferred tax Deferred tax which are described as the tax difference between the current tax and any…

Q: In 2019, Mini reports $1,503,600 of pretax book net income. Mini did not deduct any bad debt expense…

A: Total Income Tax Expenses: Once computed, your income tax cost is the amount you estimate you owe on…

Q: The following facts relate to Concord Corporation. 1. Deferred tax liability, January 1, 2020,…

A: Solution a: Computation of Required balance and recognition of Deferred tax liability and…

Q: Mini, Inc., earns pretax book net income of $1,132,000 in 2020, its first year of operations. Mini…

A: There are two types of differences can arise in the accounting. One is temporary difference and…

Q: Crane Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Total reversal amount = Reversal amount in 2021 + Reversal amount in 2022 + Reversal amount in 2023…

Q: South Carolina Corporation has one temporary difference at the end of 2020 that will reverse and…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: South Carolina Corporation has one temporary difference at the end of 2020 that will reverse and…

A: a.Compute taxable income and income taxes payable for 2020.

Q: Prance, Inc., earns pretax book net income of $800,000 in 2019. Prance acquires a depreciable asset…

A: Given that: Pretax book income = $800,000 U.S. tax rate = 21% After tax rate of return = 8%

Q: Callaway Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2017 due to…

A: (a) Date Account Title and Explanation Debit Credit   Dec, 31 2013 Income tax…

Q: At December 31, 2018 AP Corporation had a deferred tax liability of P250, 000. At December 31, 2019,…

A: Income tax expense is the obligation for the tax payers to pay the tax to the government authorities…

Q: Sarasota Corporation has one temporary difference at the end of 2020 that will reverse and cause…

A: Deferred taxes arise from temporary differences or the difference between the accounting income…

Q: Blossom Corporation reported the following results for its first three years of operation: 2020…

A: A deferred tax asset represents the overpayment or advance payment of taxes. It is the opposite of a…

Q: GYV Ltd has the following deferred tax balances as at 30 June 2019. Deferred tax asset $9 00 000…

A: Deferred tax assets and liabilities must be based on expected future tax rates - Generally, assume…

Q: Nash Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable…

A:

Q: Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of…

A:

Q: Required: What is the charge for income tax expense that will appear in the statement of profit or…

A: D. $8,000

Q: ABC Corporation prepared the following reconciliation for its first year of operations: Pretax…

A: Solution: Taxable income for 2020 = Pretax financial income - Tax exempt interest - Taxable…

Q: Nolan Corporation had the following tax information. Year   Taxable Income Tax Rate Taxes Paid 2018…

A: Given that: Net Operating Loss in 2021 = $480,000 Tax rate = 29%

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.