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The difference between the book basis and tax basis of the assets and liabilities of Ramen Corporation at the end of 2020 are as follows: Installment accounts receivable: Book Basis- P100,000, Tax Basis- PO Litigation liability: Book Basis- 20,000; Tax Basis- 0 It is estimated that the litigation will be settled in 2021. The difference in installment accounts receivable will result in taxable amount of P60,000 in 2021 and P40,000 in 2022. Ramen Corporation has taxable income of P700,000 in 2020 and is expected to have taxable income in each of the following two years. Income tax rate is 30%. This is the first year of operations of Ramen Corporation. What is the net deferred tax expense/current tax expense/income tax expense of Ramen Corporation for 2020? * , O P24,000/P210,000/P234,000 O P36,000/P210,000/P246,000 O P36,000/P216,000/P252,000 O P24,000/P216,000/P240,000

The difference between the book basis and tax basis of the assets and liabilities of Ramen Corporation at the end of 2020 are as follows: Installment accounts receivable: Book Basis- P100,000, Tax Basis- PO Litigation liability: Book Basis- 20,000; Tax Basis- 0 It is estimated that the litigation will be settled in 2021. The difference in installment accounts receivable will result in taxable amount of P60,000 in 2021 and P40,000 in 2022. Ramen Corporation has taxable income of P700,000 in 2020 and is expected to have taxable income in each of the following two years. Income tax rate is 30%. This is the first year of operations of Ramen Corporation. What is the net deferred tax expense/current tax expense/income tax expense of Ramen Corporation for 2020? * , O P24,000/P210,000/P234,000 O P36,000/P210,000/P246,000 O P36,000/P216,000/P252,000 O P24,000/P216,000/P240,000

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 difference between the book basis and tax basis of the assets and liabilities of Ramen Corporation at the end of 2020 are as follows: Installment accounts receivable: Book Basis- P100,000, Tax Basis- PO Litigation liability: Book Basis- 20,000; Tax Basis- 0 It is estimated that the litigation will be settled in 2021. The difference in installment accounts receivable will result in taxable amount of P60,000 in 2021 and P40,000 in 2022. Ramen Corporation has taxable income of P700,000 in 2020 and is expected to have taxable income in each of the following two years. Income tax rate is 30%. This is the first year of operations of Ramen Corporation. What is the net deferred tax expense/current tax expense/income tax expense of Ramen Corporation for 2020? * O P24,000/P210,000/P234,000 O P36,000/P210,000/P246,000 O P36,000/P216,000/P252,000 O P24,000/P216,000/P240,000
Transcribed Image Text:The difference between the book basis and tax basis of the assets and liabilities of Ramen Corporation at the end of 2020 are as follows: Installment accounts receivable: Book Basis- P100,000, Tax Basis- PO Litigation liability: Book Basis- 20,000; Tax Basis- 0 It is estimated that the litigation will be settled in 2021. The difference in installment accounts receivable will result in taxable amount of P60,000 in 2021 and P40,000 in 2022. Ramen Corporation has taxable income of P700,000 in 2020 and is expected to have taxable income in each of the following two years. Income tax rate is 30%. This is the first year of operations of Ramen Corporation. What is the net deferred tax expense/current tax expense/income tax expense of Ramen Corporation for 2020? * O P24,000/P210,000/P234,000 O P36,000/P210,000/P246,000 O P36,000/P216,000/P252,000 O P24,000/P216,000/P240,000
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