STARS Company reported net income for the current year 2021 before taxes is P4,288,000. The following differences were noted between the financial reporting and tax reporting: Financial Тах Interest on depository accounts 53,000 Warranty expense 260,000 P 115,000 319,000 125,000 Revenue from installment sales 584,000 Advance collections from customers Provision for probable losses Insurance premiums on senior managers' life insurance 406,000 182,000 The income tax rate is 30% and is not expected to change in the future. Estimated tax payments for the last three quarters amounted to P920,000.
STARS Company reported net income for the current year 2021 before taxes is P4,288,000. The following differences were noted between the financial reporting and tax reporting: Financial Тах Interest on depository accounts 53,000 Warranty expense 260,000 P 115,000 319,000 125,000 Revenue from installment sales 584,000 Advance collections from customers Provision for probable losses Insurance premiums on senior managers' life insurance 406,000 182,000 The income tax rate is 30% and is not expected to change in the future. Estimated tax payments for the last three quarters amounted to P920,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the adjusted balance of income tax payable to be reflected in the 2021
![STARS Company reported net income for the current year 2021 before taxes is #4,288,000. The following differences
were noted between the financial reporting and tax reporting:
Financial
Tax
Interest on depository accounts
Warranty expense
Revenue from installment sales
53,000
260,000
584,000
115,000
319,000
125,000
P
Advance collections from customers
Provision for probable losses
406,000
Insurance premiums on senior managers' life insurance
182,000
The income tax rate is 30% and is not expected to change in the future.
Estimated tax payments for the last three quarters amounted to P920,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5af1f3b8-691d-4c11-a706-283854b394fe%2F5a499d2e-111e-48ce-b656-124f4aedf6ae%2F4vacze8_processed.png&w=3840&q=75)
Transcribed Image Text:STARS Company reported net income for the current year 2021 before taxes is #4,288,000. The following differences
were noted between the financial reporting and tax reporting:
Financial
Tax
Interest on depository accounts
Warranty expense
Revenue from installment sales
53,000
260,000
584,000
115,000
319,000
125,000
P
Advance collections from customers
Provision for probable losses
406,000
Insurance premiums on senior managers' life insurance
182,000
The income tax rate is 30% and is not expected to change in the future.
Estimated tax payments for the last three quarters amounted to P920,000.
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