Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER FAST. will upvote if answered in 30 minutes Cohen Corporation paid P20,000 in January of 2021 for premiums on a two- year life

PLEASE ANSWER FAST. will upvote if answered in 30 minutes

Cohen Corporation paid P20,000 in January of 2021 for premiums on a two- year life insurance policy which names the company as the beneficiary. Additionally, Cohen Corporation's financial statements for the year ended December 31, 2021, revealed the company paid P105,000 in taxes during the year and also accrued estimated litigation losses of P200,000. Assuming the lawsuit was resolved in February of 2022 (at which time a P200,000 loss was recognized for tax purposes) and that Cohen's tax rate is 40 percent for both 2021 and 2022, what amount should Cohen report as asset for net deferred income taxes on its 2021 balance sheet?

For the current year, Hopkins Company reported total income tax expense of P54,000. Income taxes payable at the end of the prior year were P20,000 and at the end of the current year were P27,000. The deferred tax liability classified as noncurrent that resulted from the use of accelerated depreciation for tax purposes and straight-line depreciation for financial reporting purposes increased from P18,000 at the beginning of the current year to P23,000 at the end of the current year. How much cash was paid for income taxes during the year?

Foltz Co. began operations in 2019 and had operating losses of P400,000 in 2019 and P300,000 in 2020. For the year ended December 31, 2021, Foltz had a pretax financial income of P900,000. For 2019 and 2020, assume an enacted tax rate of 30 percent, and for 2021 a 35 percent tax rate. There were no temporary differences in any of the years. In Hopkins' 2021 income statement, how much should be reported as income tax expense?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Robin P. Clement, Suzanne H. Lowensohn, Joseph H. Anthony

9th Edition

0131851225, 978-0131851221

More Books

Students also viewed these Accounting questions