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

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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am.100
please answer all parts within 30 minutes...
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