Bestlook Company provided the following information for its first year of operati December 31, 2019 in connection with the preparation of it income tax return: Accounting income Nondeductible expenses Nontaxable revenue P8,000,000 400,000 600,000 Deferred income on installment sales included in 900,000 200,000 600,000 700,000 financial income but taxable in 2020 Doubtful accounts recorded Financial depreciation Tax depreciation Estimated warranty cost accrued in 2019 but not deductible for tax purposes until paid Income tax rate (current and future) a. How much is the current tax expense? b. How much is the deferred tax asset? c. How much is the deferred tax liability? d. How much is the total tax expense? 200,000 35%
Bestlook Company provided the following information for its first year of operati December 31, 2019 in connection with the preparation of it income tax return: Accounting income Nondeductible expenses Nontaxable revenue P8,000,000 400,000 600,000 Deferred income on installment sales included in 900,000 200,000 600,000 700,000 financial income but taxable in 2020 Doubtful accounts recorded Financial depreciation Tax depreciation Estimated warranty cost accrued in 2019 but not deductible for tax purposes until paid Income tax rate (current and future) a. How much is the current tax expense? b. How much is the deferred tax asset? c. How much is the deferred tax liability? d. How much is the total tax expense? 200,000 35%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 11P
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