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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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?
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