okwa't Baboy Company prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2020.  Book income before taxes- P750,000 Construction contract revenue which will reverse in 2021- P100,000 Depreciation expense that will reverse in equal amounts in each of the next five years- (P400,000) Taxable income- P450,000 What amount should Tokwa't Baboy Company report in its 2020 income statement as total provision for income tax? Assume a 30% tax rate.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tokwa't Baboy Company prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2020. 

Book income before taxes- P750,000
Construction contract revenue which will reverse in 2021- P100,000
Depreciation expense that will reverse in equal amounts in each of the next five years- (P400,000)
Taxable income- P450,000

What amount should Tokwa't Baboy Company report in its 2020 income statement as total provision for income tax? Assume a 30% tax rate.

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