s Co. has a pretax profit of P2,000,000. The income tax rate20% There were no temporary differences at the start of thevear. The only temporary differences at year-end relate to thefollowing:Carrying amountТаx baseTrade receivables1,000,000Equipment, net.Accrued expenses2,000,0001,200,000400,000Requirements: Compute for the following:a. Deferred tax liability and deferred tax assetb. Income tax expense and current tax expensec. Deferred tax expense/benefitd. Provide the journal entry.

Deferred Tax Liability: Deferred tax liability is a liability that is created due to a…

pretax profit of P2,000,000. The income tax rate 2 Bus Co. has a The only temporary differences at year-end relate to the year. following: Carrying amount Tax base Trade receivables Equipment, net. Accrued expenses 1,000,000 2,000,000 400,000 1,200,000 Requirements: Compute for the following: a. Deferred tax liability and deferred tax asset b. Income tax expense and current tax expense c. Deferred tax expense/benefit d. Provide the journal entry.

pretax profit of P2,000,000. The income tax rate 2 Bus Co. has a The only temporary differences at year-end relate to the year. following: Carrying amount Tax base Trade receivables Equipment, net. Accrued expenses 1,000,000 2,000,000 400,000 1,200,000 Requirements: Compute for the following: a. Deferred tax liability and deferred tax asset b. Income tax expense and current tax expense c. Deferred tax expense/benefit d. Provide the journal entry.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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