Tokwa't Baboy Company prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2020. Book income before taxes- P750,000 Construction contract revenue which will reverse in 2021- P100,000 Depreciation expense that will reverse in equal amounts in each of the next five years (P400,000) Taxable income- P450,000
Tokwa't Baboy Company prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2020. Book income before taxes- P750,000 Construction contract revenue which will reverse in 2021- P100,000 Depreciation expense that will reverse in equal amounts in each of the next five years (P400,000) Taxable income- P450,000
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 48P
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1. What amount should Tokwa't Baboy Company report in its 2020 income statement as total provision for income tax? Assume a 30% tax rate.
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