For the year ended December 31, 2021, Jocelyn Company reported pretax financial income of P7,500,000. The taxable income was P6,500,000. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P900,000 during the current year. What amount should be reported as current tax expense for the current year? O 1,050,000 O 1,950,000 O 2,250,000 O 1,350,000

For the year ended December 31, 2021, Jocelyn Company reported pretax financial income of P7,500,000. The taxable income was P6,500,000. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P900,000 during the current year. What amount should be reported as current tax expense for the current year? O 1,050,000 O 1,950,000 O 2,250,000 O 1,350,000

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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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

For the year ended December
31, 2021, Jocelyn Company
reported pretax financial
income of P7,500,000. The
taxable income was
P6,500,000. The difference is
due to accelerated
depreciation for income tax
purposes. The income tax rate
is 30% and the entity made
estimated tax payment of
P900,000 during the current
year. What amount should be
reported as current tax
expense for the current year?
O 1,050,000
O 1,950,000
O 2,250,000
O 1,350,000

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