Please answer in good accounting form. Thankyou Problem 3:EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during theyear. To compute the provision for income tax, the following data are provided:• Tax depreciation in excess of financial statement amount - P 36,500• Interest income received - P 80,500• Rent received in advance - P 175,000• Dividend income - P 91,700• Estimated tax payment in the current year - P 65,000• Provision for bad debts not yet recognized for tax purposes on the current year - P 48,300• Tax penalties due to late filing on tax return - P 20,000• Corporate tax rate - 30%Required:14. What is the total income tax expense for the year?15. What is the net income after tax?

The income tax is levied on the taxable income. The entity pays taxes to the government. The income…

Problem 3: EL Co. reported net income for the current year 2021 at 560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - 36,500 • Interest income received - • Rent received in advance - • Dividend income - 91,700 • Estimated tax payment in the current year - 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - 48,300 80,500 175,000 • Tax penalties due to late filing on tax return - 20,000 • Corporate tax rate - 30% Required: 14. What is the total income tax expense for the year? 15. What is the net income after tax?

Problem 3: EL Co. reported net income for the current year 2021 at 560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - 36,500 • Interest income received - • Rent received in advance - • Dividend income - 91,700 • Estimated tax payment in the current year - 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - 48,300 80,500 175,000 • Tax penalties due to late filing on tax return - 20,000 • Corporate tax rate - 30% Required: 14. What is the total income tax expense for the year? 15. What is the net income after tax?

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

Please answer in good accounting form. Thankyou

Problem 3:
EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the
year. To compute the provision for income tax, the following data are provided:
• Tax depreciation in excess of financial statement amount - P 36,500
• Interest income received - P 80,500
• Rent received in advance - P 175,000
• Dividend income - P 91,700
• Estimated tax payment in the current year - P 65,000
• Provision for bad debts not yet recognized for tax purposes on the current year - P 48,300
• Tax penalties due to late filing on tax return - P 20,000
• Corporate tax rate - 30%
Required:
14. What is the total income tax expense for the year?
15. What is the net income after tax?

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