On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of taxable temporary difference? b. What is the amount of total deductible temporary difference?
On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of taxable temporary difference? b. What is the amount of total deductible temporary difference?
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax
a. What is the amount of taxable temporary difference?
b. What is the amount of total deductible temporary difference?
(Please help me by answering the two questions. Please be kind and answer the two. Thank you so much!)
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