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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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