4- Daniel Company purchased an equipment costing P2,000,000 on January 1, 2020. The equipment has an estimated useful life of four years, with no residual value. Daniel Company depreciates this equipment using straight-line method for accounting purposes, but uses sum-of-the-years' digit method for tax purposes. Assume a 30% tax rate for all years. Daniel Company reports the following income in its income tax return for the years 2020, 2021, 2022 and 2023: REQUIRED: Other than for the difference in depreciation for the equipment described, there is no other difference between Daniel's accounting income and taxable income for years 2020, 2021, 2022 and 2023. (a) (b) (c) (d) . 2020 2021 2022 2023 (e) P 800,000 890,000 1,200,000 1,500,000 Compute for Daniel's pre-tax accounting profit for the years 2020, 2021, 2022 and 2023. Compute for the balance of deferred tax liability at the end of 2020, 2021, 2022 and 2023. Prepare entries for current income taxes and deferred income taxes for years 2020, 2021, 2022 and 2023. Compute for the total income tax expense for years 2020, 2021, 2022 and 2023. Compute the profit for years 2020, 2021, 2022 and 2023.

4- Daniel Company purchased an equipment costing P2,000,000 on January 1, 2020. The equipment has an estimated useful life of four years, with no residual value. Daniel Company depreciates this equipment using straight-line method for accounting purposes, but uses sum-of-the-years' digit method for tax purposes. Assume a 30% tax rate for all years. Daniel Company reports the following income in its income tax return for the years 2020, 2021, 2022 and 2023: REQUIRED: Other than for the difference in depreciation for the equipment described, there is no other difference between Daniel's accounting income and taxable income for years 2020, 2021, 2022 and 2023. (a) (b) (c) (d) . 2020 2021 2022 2023 (e) P 800,000 890,000 1,200,000 1,500,000 Compute for Daniel's pre-tax accounting profit for the years 2020, 2021, 2022 and 2023. Compute for the balance of deferred tax liability at the end of 2020, 2021, 2022 and 2023. Prepare entries for current income taxes and deferred income taxes for years 2020, 2021, 2022 and 2023. Compute for the total income tax expense for years 2020, 2021, 2022 and 2023. Compute the profit for years 2020, 2021, 2022 and 2023.

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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Please help me with part a.