27. Analysis of the assets and liabilities of Iniwan Corp. on December 31, 2016 disclosed assets with a tax basis of P1,000,000 and a book basis of P1,300,000. There was no difference in the liability basis. The difference in the asset basis arose from temporary difference that would reverse in the following years: 2019- P72,000 2020- 40,000 The enacted tax rates are 30% for 2016- 2019 and 32% for the years 2020-2021. What is the total deferred tax 2017- P80,000 2018 - 70,000 2021 - P38,000 liability at December 31, 2016? А. Р90,000 В. Р91,560 C. P96,000 D. P99,000

27. Analysis of the assets and liabilities of Iniwan Corp. on December 31, 2016 disclosed assets with a tax basis of P1,000,000 and a book basis of P1,300,000. There was no difference in the liability basis. The difference in the asset basis arose from temporary difference that would reverse in the following years: 2019- P72,000 2020- 40,000 The enacted tax rates are 30% for 2016- 2019 and 32% for the years 2020-2021. What is the total deferred tax 2017- P80,000 2018 - 70,000 2021 - P38,000 liability at December 31, 2016? А. Р90,000 В. Р91,560 C. P96,000 D. P99,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

27. Analysis of the assets and liabilities of Iniwan Corp. on December 31, 2016 disclosed assets with a tax
basis of P1,000,000 and a book basis of P1,300,000. There was no difference in the liability basis. The
difference in the asset basis arose from temporary difference that would reverse in the following years:
2019- P72,000
2020- 40,000
The enacted tax rates are 30% for 2016- 2019 and 32% for the years 2020-2021. What is the total deferred tax
2021 - P38,000
2017- P80,000
2018 - 70,000
liability at December 31, 2016?
А. Р90,000
В. Р91,560
C. P96,000
D. P99,000

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