On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. income tax rate is 30%   a. What is the amount of taxable temporary difference? *     b. What is the amount of total deductible temporary difference? *   c. Compute for the current tax expense.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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AccountingQ&A LibraryOn December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. income tax rate is 30%   a. What is the amount of taxable temporary difference? *     b. What is the amount of total deductible temporary difference? *   c. Compute for the current tax expense. *   d. Compute for the deferred tax expense. *   e. What is the amount of deferred tax asset? *   f. Compute for the net income after tax. *

On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. income tax rate is 30%   a. What is the amount of taxable temporary difference? *     b. What is the amount of total deductible temporary difference? *   c. Compute for the current tax expense. *   d. Compute for the deferred tax expense. *   e. What is the amount of deferred tax asset? *   f. Compute for the net income after tax. *

 
 
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n December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000.   a. What is the amount of taxable temporary difference? *     b. What is the amount of total deductible temporary difference? *   c. Compute for the current tax expense. *   d. Compute for the deferred tax expense. *   e. What is the amount of deferred tax asset? *   f. Compute for the net income after tax. *

 
 

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On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. income tax rate is 30%
 
 
d. Compute for the deferred tax expense. *
 
e. What is the amount of deferred tax asset? *
 
f. Compute for the net income after tax. *
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