ABC Corp., a pharmaceutical company registered in 2020 had made available the following financial information forTY2021:Balance Sheet:Asset - Php 500,000Liability - Php 100,000Stockholders' Equity - Php 400,000Income Statement:Gross sales - Php 5,000,000,000Cost of sales – Php 4,000,000,000Operating Expenses - Php 500,000,000How much is the income tax due under CREATE Law?ChoicesPhp 10,000,000Php 100,000,000Php 125,000,000Php 150,000,000 GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022)OverBut not over The Tax shall bePlusOf Excess Over250,000250,000400,00020%250,000400,000800,00030,00025%400,000800,0002,000,000130,00030%800,0002,000,000 8,000,000490,00032%2,000,0008,000,0002,410,00035%8,000,000

There are two corporate tax rate for the year 2021 20% tax rate: It is applicable to the company…

Answered: ABC Corp., a pharmaceutical company…

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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At the beginning of 2021, Pitman Co. had pretax financial income of $1,200,000. Additionally, there was a timing difference of $300,000 due to an accounts receivable that will not be collected until the following year. The tax rate us 30%. A. Calculate the total taxable income for 2021. B. Calculate Income tax expense, income tax payable, and the deferred amount for 2021, and create the journal entry.

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