Frey Corporation's income statement for the year ended December 31, 2002, shows pretax income of ₱1,000,000. The following items are treated differently on the tax return and in the accounting records: Tax Return Accounting Records Rent income ₱ 70,000 ₱120,000 Depreciation expense 280,000 220,000 Premiums on officers' life insurance - 90,000 Frey's tax rate for 2002 is 30 percent. How much is the deferred tax expense (benefit) for 2002? 33,000 (24,000) 24,000 (33,000)
Frey Corporation's income statement for the year ended December 31, 2002, shows pretax income of ₱1,000,000. The following items are treated differently on the tax return and in the accounting records: Tax Return Accounting Records Rent income ₱ 70,000 ₱120,000 Depreciation expense 280,000 220,000 Premiums on officers' life insurance - 90,000 Frey's tax rate for 2002 is 30 percent. How much is the deferred tax expense (benefit) for 2002? 33,000 (24,000) 24,000 (33,000)
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 12M
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Frey Corporation's income statement for the year ended December 31, 2002, shows pretax income of ₱1,000,000. The following items are treated differently on the tax return and in the accounting records:
|
Tax Return |
Accounting Records |
Rent income |
₱ 70,000 |
₱120,000 |
|
280,000 |
220,000 |
Premiums on officers' life insurance |
- |
90,000 |
Frey's tax rate for 2002 is 30 percent.
How much is the
-
33,000
-
(24,000)
-
24,000
- (33,000)
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