Problem 16-2 (ACP) Zeus Company reported pretax financial income of P8,000,000 for the year ended December 31, 2021. The taxable income was P9,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 25% and Zeus Company made estimated tax payment of P1,000,000 during the current year. Required: a. Prepare journal entries relating to income tax for 2021. b. Compute the total income tax expense for 2021.

Problem 16-2 (ACP) Zeus Company reported pretax financial income of P8,000,000 for the year ended December 31, 2021. The taxable income was P9,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 25% and Zeus Company made estimated tax payment of P1,000,000 during the current year. Required: a. Prepare journal entries relating to income tax for 2021. b. Compute the total income tax expense for 2021.

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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