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The ABC Company has determined that its taxable income for the year 2021 is P3,000,000. The following related facts were gathered (Income tax rate for current and future years is 30%): Cumulative temporary differences, 12/31/2021 Taxable temporary differences- P1,480,000 Deductible temporary differences- P750,000 Permanent differences: Non-taxable revenue- P200,000 Non-deductible expenses- P600,000

The ABC Company has determined that its taxable income for the year 2021 is P3,000,000. The following related facts were gathered (Income tax rate for current and future years is 30%): Cumulative temporary differences, 12/31/2021 Taxable temporary differences- P1,480,000 Deductible temporary differences- P750,000 Permanent differences: Non-taxable revenue- P200,000 Non-deductible expenses- P600,000

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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The ABC Company has determined that its taxable income for the year 2021 is P3,000,000. The following related facts were gathered (Income tax rate for current and future years is 30%): Cumulative temporary differences, 12/31/2021 Taxable temporary differences- P1,480,000 Deductible temporary differences- P750,000 Permanent differences: Non-taxable revenue- P200,000 Non-deductible expenses- P600,000 Deferred tax asset, December 31, 2020- P150,000 Deferred tax liability, December 31, 2020- P300,000 How much is the total income tax expense (current and deferred) for the year 2021? * P969,000 P900,000 P831,000 P813,000
Transcribed Image Text:The ABC Company has determined that its taxable income for the year 2021 is P3,000,000. The following related facts were gathered (Income tax rate for current and future years is 30%): Cumulative temporary differences, 12/31/2021 Taxable temporary differences- P1,480,000 Deductible temporary differences- P750,000 Permanent differences: Non-taxable revenue- P200,000 Non-deductible expenses- P600,000 Deferred tax asset, December 31, 2020- P150,000 Deferred tax liability, December 31, 2020- P300,000 How much is the total income tax expense (current and deferred) for the year 2021? * P969,000 P900,000 P831,000 P813,000
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