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 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?

Income taxes means obligations or taxes needs to be paid on total income earned by the business.…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The principles and objectives that guide the creation of accounting information under accrual…

A: The matching principle, which is related to accrual accounting, asserts that an expense must be…

Q: Discuss and explain in details the steps of preparing Accrual basis accounting with one example and…

A: Accrual basis of accounting is that basis of accounting in which income and expenses are recorded in…

Q: Describe the conceptual framework of accounting principles.

A: The conceptual framework can be defined as a system of ideas and objectives that lead to the…

Q: Explain mandated changes in accounting principle.

A: Accounting principles are the uniform practices that are followed in the preparation of the…

Q: xplain the conceptual framework of accounting and discuss its importance in the development of…

A: Accounting standards, also known as Generally Accepted Accounting Principles (GAAP), are a set of…

Q: What do the decisions based on accounting information include?

A: Accounting information is the collection and processing of the business transaction to conclude the…

Q: Support for Politicization of rule making for accounting standards

A: The politicization of accounting rulemaking should not be viewed in a narrow sense. As accounting…

Q: implementation and application of Achieves Accounting Uniformity

A: The financial statement shows the financial activities of the company. It involves the preparation…

Q: Discuss the fundamental principles of accounting and their significance in ensuring accurate and…

A: Principles of accounting refer to the fundamental concepts and guidelines that guide the practice of…

Q: ow the external will use the accounting information to do decisions

A: Accounting information can be defined as the financial reports and data produced by way of…

Q: What is the relevance of the Accounting Information System in the present practice of accounting?

A: Accounting Information System: An accounting information system (AIS) is a framework that a company…

Q: oes the conceptual framework assists accountants in the application of accounting standards? Please…

A: The conceptual framework assists accountants in several ways when applying accounting standards:

Q: Who must register with the Public Company Accounting Oversight Board?

A: Public Company Accounting Oversight Board refers to the non-profit organization which regulates…

Q: Explain the purpose of the Public Company Accounting Oversight Board.

A: Auditing: In auditing, auditors verify the correctness and fair presentation of financial…

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 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?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Calculations:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In your own words, what does relevance mean to you? After tackling this topic, then research characteristics of relevance from an Accounting standards perspective and explain.
Discuss and outline the requirements for "revenue recognition principles". What do you think the standard is designed to achieve? In your opinion is there any gap that the standard setter has not fully addressed
What is GASB, Government Accounting Standards Board ?
Explain how and why some changes in accounting principle are reportedprospectively.
What is the impact of being registered with the Public Company Accounting Oversight Board?
Write down about the Accounting Principles Board in detail.
Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct. True or False?
Account
Define certified public accountants.
Who should set accounting standards? A government agency or private body such as the FASB?
What are accounting errors and how they are reported. What are the disclosure requirements for correction of errors. Please see FASB codification to discuss the disclosure requirements.