P30,000 70,000 40,000 10,000 Advances for future services to be rendered Collections for past services rendered Reimbursements for client expenses Reimbursement for out-of-pocket expenses How much will be included in Bong's gross income for regular income tax purposes?

P30,000 70,000 40,000 10,000 Advances for future services to be rendered Collections for past services rendered Reimbursements for client expenses Reimbursement for out-of-pocket expenses How much will be included in Bong's gross income for regular income tax purposes?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Bong, a professional practitioner, received the following from his clients:
Advances for future services to be rendered
Collections for past services rendered
Reimbursements for client expenses
Reimbursement for out-of-pocket expenses
P30,000
70,000
40,000
10,000
How much will be included in Bong's gross income for regular income tax
purposes?
P150,000
P140,000
P110,000
P100,000

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