3. Leer Corporation's pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax retum are as follows; Depreciation in the financial statements was P8,000 more than the tax depreciation. The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer's effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of
3. Leer Corporation's pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax retum are as follows; Depreciation in the financial statements was P8,000 more than the tax depreciation. The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer's effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of
Chapter1: Financial Statements And Business Decisions
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Please put all of the necessary information and computations for better understanding. Thanks ?
Transcribed Image Text:3. Leer Corporation's pretax income in 20x7 was P100,000. The temporary differences between
amounts reported in the financial statements and the tax return are as follows;
Depreciation in the financial statements was P8,000 more than the tax depreciation.
The equity method of accounting resulting in financial statement income of P35,000. A
P25,000 dividend was received during the year, which is eligible for the 80% dividends
received deduction.
Leer's effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should
report a current provision for income taxes of
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