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 - 36,500 • Interest income received - • Rent received in advance - • Dividend income - 91,700 80,500 175,000 • 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 • 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 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 - 36,500 • Interest income received - • Rent received in advance - • Dividend income - 91,700 80,500 175,000 • 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 • 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?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 18E
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Please answer it in good accounting form
![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fded3a30e-0200-46cf-bfad-8e3defc88d99%2F41c9710d-0b89-4a89-9447-997a5805c9b8%2Ftvuhj3r_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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