9. Stone Co. income before income taxes for the year. Stone's 20x1 tax perations in 20x1 and reported P225,000 in depreciation exceeded its book depreciation by P25,000. Stone also had nondeductible book expenses of P10,000 related to permanent differences. Stone's tax rate for 20x1 was 40%, and the enacted rate for years after 20x1 is 35%. In its December 31, 20x1, balance sheet, what amount of deferred income tax liability should Stone report? b. 10,000 a. 8,750 c. 12,250 d. 14,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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9. Stone Co. began operations in 20x1 and reported P225,000 in
depreciation exceeded its book depreciation by P25,000. Stone
income before income taxes for the year. Stone's 20x1 tax
(AICPA
Ctone Co. began operations in 20x1 and reported P225,000 in
ecome before income taxes for the Stone's 20x1 tax
year.
depreciation exceeded its book depreciation by P25,000. Stone
leo had nondeductible book expenses of P10,000 related to
permanent differences. Stone's tax rate for 20x1 was 40%, and
the enacted rate for years after 20x1 is 35%. In its December 31,
20x1, balance sheet, what amount of deferred income tax
liability should Stone report?
b. 10,000
a. 8,750
с. 12,250
d. 14,000
(AICPA)
Transcribed Image Text:9. Stone Co. began operations in 20x1 and reported P225,000 in depreciation exceeded its book depreciation by P25,000. Stone income before income taxes for the year. Stone's 20x1 tax (AICPA Ctone Co. began operations in 20x1 and reported P225,000 in ecome before income taxes for the Stone's 20x1 tax year. depreciation exceeded its book depreciation by P25,000. Stone leo had nondeductible book expenses of P10,000 related to permanent differences. Stone's tax rate for 20x1 was 40%, and the enacted rate for years after 20x1 is 35%. In its December 31, 20x1, balance sheet, what amount of deferred income tax liability should Stone report? b. 10,000 a. 8,750 с. 12,250 d. 14,000 (AICPA)
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