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Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 2020 2021 30% 32% 34% 36% 2022 The reporting for this temporary difference at December 31, 2019 would be a * O deferred tax asset of P216,000.

Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 2020 2021 30% 32% 34% 36% 2022 The reporting for this temporary difference at December 31, 2019 would be a * O deferred tax asset of P216,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 30% 2020 32% 2021 34% 2022 36% The reporting for this temporary difference at December 31, 2019 would be a* O deferred tax asset of P216,000. O deferred tax liability of P244,800. O deferred tax liability of P216,000. O deferred tax asset of P244,800.
Transcribed Image Text:Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 30% 2020 32% 2021 34% 2022 36% The reporting for this temporary difference at December 31, 2019 would be a* O deferred tax asset of P216,000. O deferred tax liability of P244,800. O deferred tax liability of P216,000. O deferred tax asset of P244,800.
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