1. ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC asset's and liabilities are as follows: Deferred tax asset 12/31/2019-200,000 12/31/2018-500,000 Deferred tax liability 12/31/2019-420,000 12/31/2018-600,000 Income tax payable 12/31/2019-850,000 12/31/2018-200,000 The deferred tax liability was caused by accelerated depreciation and the deferred tax asset is for rentals received in advance. How much is ABC's total income tax expense?
independent problems:
1. ABC Company reported in its 2019 current tax expense at P 5,530,000. The following changes in ABC asset's and liabilities are as follows:
How much is ABC's total income tax expense?
2. ABC Inc. began operations on July 1,2019. The company recognizes income from long term construction contracts under the percentage of completion method in its financial statements and under the cost recovery method for income tax purposes. Income under each are as follows: 2019 Cost recovery- P 0 % of completion- P 700,000 2020 Cost recovery- P 800,000 % of completion- P 1,280,000 2021 Cost recovery- P 1,350,000 % of completion- P 1,700,000 The income tax rate was 32% for 2019. Based on a new law, for years after 2019, the tax rate is 34%. There are no other temporary differences. ABC should report in its December 31,2021 a deferred tax liability of
3. On April 1,2019, ABC Company prepaid a P 38,000 premium on an annual insurance policy. The premium payment was a tax deductible expense in ABC's cash basis tax return. The accrual basis income statement will report a P 28,500 insurance expense in 2019 and 9,500 insurance expense for 2020. Income tax rate is 30% in 2019 and in subsequent years. In ABC's December 31,2019
4. For the year 2019, ABC Company reported income tax expense of P 110,000. Income taxes payable at the end of 2018 were P 90,000 and at the end of 2019 were P 100,000. The deferred tax liability that resulted from the use of accelerated depreciation for tax purposes and the straight-line method for financial reporting purposes is P 105,000 at the beginning of 2019 and P 130,000 at the end of 2019. How much cash was paid for income taxes during the year?
5. On December 31,2019, ABC Company has revalued its property and has recognized the increase from the revaluation in its financial statements. The carrying value of the property before the revaluation was P 9,800,000 and the revalued amount was P 12,500,000. However, the tax base of the property was only P 8,250,000. The income tax rate is 30%. What is the deferred tax asset or liability on December 31,2019?
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