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Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows;  Depreciation in the financial statements was P8,000 more than the tax depreciation.  The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer’s effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of __________.

Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows;  Depreciation in the financial statements was P8,000 more than the tax depreciation.  The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction. Leer’s effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of __________.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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3. Leer Corporation’s pretax income in 20x7 was P100,000. The temporary differences between amounts reported in the financial statements and the tax return are as follows;


Depreciation in the financial statements was P8,000 more than the tax depreciation.
 The equity method of accounting resulting in financial statement income of P35,000. A P25,000 dividend was received during the year, which is eligible for the 80% dividends received deduction.


Leer’s effective income tax rate was 30% in 20x7. In its 20x7 income statement, Leer should report a current provision for income taxes of __________.

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