The following information is taken from Pork Humba Company's 2020 profit and loss: Profit before income taxes- P3,000,000 Income tax expense Current- P1,128,000 Deferred- P84,000 Profit- P1,788,000 Pork Humba Company's first year of operation was 2020. The company has a 30% tax rate. Management decided to use accelerated depreciation for tax purposes and the straight-line method for financial reporting purposes. The amount charged to depreciation expense in 2020 was P1,200,000. Assuming the temporary difference existed between the book income and taxable income, what amount did Pork Humba Company deduct for depreciation on its tax return for 2020? *

The following information is taken from Pork Humba Company's 2020 profit and loss: Profit before income taxes- P3,000,000 Income tax expense Current- P1,128,000 Deferred- P84,000 Profit- P1,788,000 Pork Humba Company's first year of operation was 2020. The company has a 30% tax rate. Management decided to use accelerated depreciation for tax purposes and the straight-line method for financial reporting purposes. The amount charged to depreciation expense in 2020 was P1,200,000. Assuming the temporary difference existed between the book income and taxable income, what amount did Pork Humba Company deduct for depreciation on its tax return for 2020? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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