a. Compute for Daniel's pre-tax accounting profit for the years 2020, 2021, 2022, and 2023.b. Compute for the belance of deferred tax liability at the end of 2020, 2021, 2022, and 2023.c. Prepare journal entries for current income taxes and deferred income taxes for years 2020, 2021, 2022, and 2023. Daniel Company purchased an equipment costing P2,000,000on January 1, 2020. The equipment has an estimated useful lifeof four years, with no residual value. Daniel Companydepreciatesthis equipment using straight-line method foraccounting purposes, but uses sum-of-the-years' digit methodfor tax purposes. Assume a 30% tax rate for all years.Daniel Company reports the following income in its income taxreturn for the years 2020, 2021, 2022 and 2023:(a)Other than for the difference in depreciation for the equipmentdescribed, there is no other difference between Daniel'saccounting income and taxable income for years 2020, 2021,2022 and 2023.REQUIRED:(b)(c)(d) .2020202120222023(e)P 800,000890,0001,200,0001,500,000Compute for Daniel's pre-tax accounting profit for the years2020, 2021, 2022 and 2023.Compute for the balance of deferred tax liability at the endof 2020, 2021, 2022 and 2023.Prepare entries for current income taxes and deferredincome 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.

2020 2021 2022 2023 Income Before Deducting Dep. 800000 890000 1200000 1500000 Less:…

(a) (b) EQUIRED: (c) 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. (d) . Compute for the total income tax expense for years 2020, 2021, 2022 and 2023. (e) Compute the profit for years 2020, 2021, 2022 and 2023.

(a) (b) EQUIRED: (c) 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. (d) . Compute for the total income tax expense for years 2020, 2021, 2022 and 2023. (e) 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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