Multiple Choice FU Corporation is an exempt BMBE taxpayer in 2020 but became a taxable regular income taxpayer in 2021. It deducted P160,000 bad debt expense in 2020. In 2021, it recovered P30,000 out of the bad debts. Net income before bad debts in 2020 is P100,000 while net income before bad debts in 2021 amounted to 130,000. Compute for the net income in 2021. P100,000 P130,000 O P160,000 O P190,000
Multiple Choice FU Corporation is an exempt BMBE taxpayer in 2020 but became a taxable regular income taxpayer in 2021. It deducted P160,000 bad debt expense in 2020. In 2021, it recovered P30,000 out of the bad debts. Net income before bad debts in 2020 is P100,000 while net income before bad debts in 2021 amounted to 130,000. Compute for the net income in 2021. P100,000 P130,000 O P160,000 O P190,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![4G E 10:12 O O &
01:57:55 Remaining
Multiple Choice
FU Corporation is an exempt
BMBE taxpayer in 2020 but
became a taxable regular income
taxpayer in 2021. It deducted
P160,000 bad debt expense
in 2020. In 2021, it recovered
P30,000 out of the bad debts.
Net income before bad debts
in 2020 is P100,000 while net
income before bad debts in 2021
amounted to 130,000.
Compute for the net income in
2021.
P100,000
P130,000
P160,000
P190,000
25 of 60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74cb2c63-40bb-4750-8368-18c8ea604bb1%2Fee809ae0-170f-4488-9c3b-9d7a3e6f8289%2Ftepgcz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4G E 10:12 O O &
01:57:55 Remaining
Multiple Choice
FU Corporation is an exempt
BMBE taxpayer in 2020 but
became a taxable regular income
taxpayer in 2021. It deducted
P160,000 bad debt expense
in 2020. In 2021, it recovered
P30,000 out of the bad debts.
Net income before bad debts
in 2020 is P100,000 while net
income before bad debts in 2021
amounted to 130,000.
Compute for the net income in
2021.
P100,000
P130,000
P160,000
P190,000
25 of 60
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