As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary differences totaling P3,000,000. Of this total, P1,000,000 relates to current items. Batangas also had deductible temporary differences totaling P1,500,000, P250,000 of which relates to current items. Pretax financial income for the year was P20,000,000. The income tax rate is 35%. How much income tax payable should Batangas Company report on December 31, 2022?

As of December 31, 2022, its first year of operations, Batangas Company had taxable temporary differences totaling P3,000,000. Of this total, P1,000,000 relates to current items. Batangas also had deductible temporary differences totaling P1,500,000, P250,000 of which relates to current items. Pretax financial income for the year was P20,000,000. The income tax rate is 35%. How much income tax payable should Batangas Company report on December 31, 2022?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - ₱ 36,500 • Interest income received - ₱ 80,500 • Rent received in advance - ₱ 175,000 • Dividend income - ₱ 91,700 • Estimated tax payment in the current year - ₱ 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300 • Tax penalties due to late filing on tax return - ₱ 20,000 • Corporate tax rate – 30% Required: 11. How much is the taxable income for the year? 12. How much is the current tax expense for the year? 13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? 14. What is the total income tax expense for the year? 15. What is the net income after tax?
EL Co. reported net income for the current year 2021 at ₱560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - ₱ 36,500• Interest income received - ₱ 80,500• Rent received in advance - ₱ 175,000• Dividend income - ₱ 91,700• Estimated tax payment in the current year - ₱ 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300• Tax penalties due to late filing on tax return - ₱ 20,000• Corporate tax rate – 30% Required: 14. What is the total income tax expense for the year?15. What is the net income after tax?
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