Assessment Task 6 - 11. Pine Corporation's books showed pretax income of P600,000 for the year ended December31, 20x1. In the computation of federal income taxes, the following data were considered:Gain on involuntary conversion (expropriation)P350,000Depreciation deducted for tax purposes in excess of depreciationdeducted for book purposes50,000Estimated tax payments during 20x170,000Income tax rate30%What amount should Pine report as its current income tax liability on its December 31, 20x1,balance sheet?2. For the year ended December 31, 20x1, Mont Co.'s books showed income of P600,000 beforeprovision for income tax expense. To compute taxable income for taxation purposes, thefollowing items should be noted:Income from exempt municipal bondsP60,000Depreciation deducted for tax purposes in excess of depreciation recorded on the books 120,000Proceeds received from life insurance on death of officer100,000Estimated tax paymentsEnacted corporate tax rate30%What amount should Mont report at December 31, 20x1 as its income tax liability?

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1. Pine Corporation's books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?

1. Pine Corporation's books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?

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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