Problem 1: JAY Co. reported net income for the current year 2021 at P2,395,000 before taxes. Included in the determination of the said net income were: Non-deductible expenses Accrued warranty expenses Rental payments made in advance Advance collections from customers 319,200 ▸ 54,000 ℗ 210,000 171,500 P125,800 ℗ 65,000 Non-taxable income Provision for probable losses The income tax rate is 30% and is not expected to change in the future. Required: 4. What is the total deferred tax aplity to be presented in the 2021 Statement of Financial Position? 5. Assuming that the expected income tax rate for the following year is 32%, what is the total tax expense? 6. Assuming that the expected income tax rate for the following year is 32%, what is the total deferred tax liability?

Problem 1: JAY Co. reported net income for the current year 2021 at P2,395,000 before taxes. Included in the determination of the said net income were: Non-deductible expenses Accrued warranty expenses Rental payments made in advance Advance collections from customers 319,200 ▸ 54,000 ℗ 210,000 171,500 P125,800 ℗ 65,000 Non-taxable income Provision for probable losses The income tax rate is 30% and is not expected to change in the future. Required: 4. What is the total deferred tax aplity to be presented in the 2021 Statement of Financial Position? 5. Assuming that the expected income tax rate for the following year is 32%, what is the total tax expense? 6. Assuming that the expected income tax rate for the following year is 32%, what is the total deferred tax liability?

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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