33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expenses Excess depreciation for taxes Taxable income 4,500,000 6,000,000 (9,000,000) 1,500,000 The estimated litigation expense of P6,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. la

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is the amount of deferred tax asset recorded at December 31, 2017?

a. 450,000

b. 800,000

c. 1,350,000

d. 1,800,000

 

What is the amount of current and non-current deferred tax liability reported at December 31, 2017?

a. 900,000 and 1,800,000

b. 0 and 900,000

c. 0 and 2,700,000

d. 0 and 2,250,000

33. At the end of 2017, its first year of operations, Staccato Company prepared a
reconciliation between pretax financial income and taxable income as follows:
Pretax financial income
Estimated litigation expenses
Excess depreciation for taxes
Taxable income
4,500,000
6,000,000
(9,000,000)
1,500,000
The estimated litigation expense of P6,000,000 will be deductible in 2018 when it is
expected to be paid. Use of the depreciable assets will result in taxable amounts of
P3,000,000 in each of the next three years. The income tax rate is 30% for all years.
Transcribed Image Text:33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expenses Excess depreciation for taxes Taxable income 4,500,000 6,000,000 (9,000,000) 1,500,000 The estimated litigation expense of P6,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years.
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