a. Determine the amount of deffered tax liability at December 31, 2020b. Compute the total amont of income tax expense for the year 2020, identifying separately the curent position and deferred portion. c. Prepare the journal entries for income tax for the year ended December 31, 2020. 4-13. Conchita Corporation's only temporary difference at December31, 2019 is caused by a P2,000,000 deferred gain for taxpurposes for an installment sale of a plant asset, and relatedreceivable is due in equal installments in the financial yearsending December 31, 2021 and December 31, 2022. The relateddeferred tax liability at December 31, 2019 was P640,000, basedon the tax rate of 32%. A new tax rate of 30% is enacted and isexpected to become effective for years ending on and afterDecember 31, 2020. Taxable profit is the same as financialprofit for the year 2020, which is P3,000,000.REQUIRED:(a)(b)(b)Determine the amount of deferred tax liability at December31, 2020.Compute the total amount of income tax expense for theyear 2020, identifying separately the current portion andthe deferred portion.Prepare the entries for income tax for the year endedDecember 31, 2020.

Lets understand the basics. Deferred tax arise due to taxable temporary difference arise due to book…

Answered: 4-13. Conchita Corporation's only…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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a. Determine the amount of deffered tax liability at December 31, 2020
b. Compute the total amont of income tax expense for the year 2020, identifying separately the curent position and deferred portion.
c. Prepare the journal entries for income tax for the year ended December 31, 2020.

4-13. Conchita Corporation's only temporary difference at December
31, 2019 is caused by a P2,000,000 deferred gain for tax
purposes for an installment sale of a plant asset, and related
receivable is due in equal installments in the financial years
ending December 31, 2021 and December 31, 2022. The related
deferred tax liability at December 31, 2019 was P640,000, based
on the tax rate of 32%. A new tax rate of 30% is enacted and is
expected to become effective for years ending on and after
December 31, 2020. Taxable profit is the same as financial
profit for the year 2020, which is P3,000,000.
REQUIRED:
(a)
(b)
(b)
Determine the amount of deferred tax liability at December
31, 2020.
Compute the total amount of income tax expense for the
year 2020, identifying separately the current portion and
the deferred portion.
Prepare the entries for income tax for the year ended
December 31, 2020.

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