29. Forever Incorporated's partial income statement after its first year of operation is as follows: Income before income taxes P3,750,000 Income tax expense Current P1,035,000 Deferred 90,000 1,125,000 P2,625,000 Net Income Forever uses straight-line method of depreciation for financial reporting purposes and accelerated depreciation method for tax purposes. The amount charged to depreciation expenses on its tax return this year was P1,800,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 30% tax rate, what amount was deducted for depreciation on the company's book for the current year? ANSWER:

29. Forever Incorporated's partial income statement after its first year of operation is as follows: Income before income taxes P3,750,000 Income tax expense Current P1,035,000 Deferred 90,000 1,125,000 P2,625,000 Net Income Forever uses straight-line method of depreciation for financial reporting purposes and accelerated depreciation method for tax purposes. The amount charged to depreciation expenses on its tax return this year was P1,800,000. No other differences existed between book income and taxable income except for the amount of depreciation. Assuming a 30% tax rate, what amount was deducted for depreciation on the company's book for the current year? ANSWER:

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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