Probi KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the determination 1 at of the said net income were: Current tax rate 30% P 84,000 P 205,000 Non-deductible expenses Non-taxable income At the beginning of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating Future taxable amount P 1,110,000 P 567,000 At the end of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating P 720,000 P 632,000 Required: 7. How much is the current tax expense? 8. How much is the total tax expense?
Probi KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the determination 1 at of the said net income were: Current tax rate 30% P 84,000 P 205,000 Non-deductible expenses Non-taxable income At the beginning of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating Future taxable amount P 1,110,000 P 567,000 At the end of the year: Cumulative temporary difference creating future deductible amount Cumulative temporary difference creating P 720,000 P 632,000 Required: 7. How much is the current tax expense? 8. How much is the total tax expense?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 2:
KAY Co. reported net income for the current year 2021 at P4,180,000 before taxes. Included in the determination
of the said net income were:
Current tax rate
30%
P 84,000
P 205,000
Non-deductible expenses
Non-taxable income
At the beginning of the year:
Cumulative temporary difference creating future deductible amount
Cumulative temporary difference creating Future taxable amount
P 1,110,000
P 567,000
At the end of the year:
Cumulative temporary difference creating future deductible amount
Cumulative temporary difference creating
P 720,000
P 632,000
Required:
7. How much is the current tax expense?
8. How much is the total tax expense?
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