. For the year ended December 31, 20x1, Mont Co's books showed income of P600,000 before provision for income tax expense. To compute taxable income for taxation purposes, the following items should be noted: Income from exempt municipal bonds Depreciation deducted for tax purposes in excess of depreciation recorded on the books Proceeds received from life insurance on death of officer 60,000 120,000 100,000 Estimated tax payments 30% Enacted corporate tax rate What amount should Mont report at December 31, 20x1, as its income tax liability? a. 96,000 b. 114,000 c. 156,000 d. 162,000

. For the year ended December 31, 20x1, Mont Co's books showed income of P600,000 before provision for income tax expense. To compute taxable income for taxation purposes, the following items should be noted: Income from exempt municipal bonds Depreciation deducted for tax purposes in excess of depreciation recorded on the books Proceeds received from life insurance on death of officer 60,000 120,000 100,000 Estimated tax payments 30% Enacted corporate tax rate What amount should Mont report at December 31, 20x1, as its income tax liability? a. 96,000 b. 114,000 c. 156,000 d. 162,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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E18-11 Multiple Tax Rates For the year ended December 31, 2019, Nelson Co.’s income statement showed income of $435,000 before income, tax expense. To compute taxable income, the following differences were noted: Income from tax-exempt municipal bonds $60,000 Depreciation deducted for tax purposes in excess of depreciation recorded on the books $120,000 Proceeds received from life insurance on death of an insured employee $100,00 Corporate tax rate for 2019 30% Enacted tax rate for future periods 35% Required: 1. Calculate taxable income and tax payable for tax purposes. 2. Prepare Nelson’s income tax journal entry at the end of 2019.
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Please answer in good accounting form. Thankyou 7. Compute for the taxable income
Subject: acounting
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