M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth ye of operations), shows pretax income of P3,000,000. The company's tax rate for 2020 is 30%. The followi tems are treated differently on the tax return and in the accounting records: Tax Return P140,000 560,000 Accounting Records P240,000 Rent revenue Depreciation expense Premium on officers' life insurance and the family is the beneficiary The records also show that the net sales are P60M; cost of goods sold is P29M; sales returns a allowances, P550,000; & sales discounts, P650,000. What is the income tax payable for 2020? (Apply i areCREATE law rulinest 440,000 280,000
M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth ye of operations), shows pretax income of P3,000,000. The company's tax rate for 2020 is 30%. The followi tems are treated differently on the tax return and in the accounting records: Tax Return P140,000 560,000 Accounting Records P240,000 Rent revenue Depreciation expense Premium on officers' life insurance and the family is the beneficiary The records also show that the net sales are P60M; cost of goods sold is P29M; sales returns a allowances, P550,000; & sales discounts, P650,000. What is the income tax payable for 2020? (Apply i areCREATE law rulinest 440,000 280,000
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 18E
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![Question
What is the income tax payable for 2020? (Apply the pre-CREATE law rulings)
M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth year
of operations), shows pretax income of P3,000,000. The company's tax rate for 2020 is 30%. The following
items are treated differently on the tax return and in the accounting records:
Tax Return
P140,000
Accounting Records
Rent revenue
P240,000
Depreciation expense
Premium on officers' life insurance and the family
is the beneficiary
The records also show that the net sales are P60M; cost of goods sold is P29M; sales returns and
allowances, P550,000; & sales discounts, P650,000. What is the income tax payable for 2020? (Appły the
pre-CREATE law rulings)
560,000
440,000
280,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01510554-f8b7-4ccc-a103-d125f4c2d3a3%2Fc1cb0c38-049d-43d6-bcb2-9ec861c5f8a8%2F29r4lc8_processed.png&w=3840&q=75)
Transcribed Image Text:Question
What is the income tax payable for 2020? (Apply the pre-CREATE law rulings)
M&M Company's income statement for the year ended December 31, 2020 (considered as the fifth year
of operations), shows pretax income of P3,000,000. The company's tax rate for 2020 is 30%. The following
items are treated differently on the tax return and in the accounting records:
Tax Return
P140,000
Accounting Records
Rent revenue
P240,000
Depreciation expense
Premium on officers' life insurance and the family
is the beneficiary
The records also show that the net sales are P60M; cost of goods sold is P29M; sales returns and
allowances, P550,000; & sales discounts, P650,000. What is the income tax payable for 2020? (Appły the
pre-CREATE law rulings)
560,000
440,000
280,000
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