Under accrual method, what is the income before taxes should Iniwan report in its December 31, 2020? *
Under accrual method, what is the income before taxes should Iniwan report in its December 31, 2020? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Iniwan Corp. maintains its accounting records on the cash basis but restates it financial
statements to accrual basis. Iniwan had P600,000 in cash basis pre-tax income for 2020. The
following information pertains to Iniwan's operations for the year ended December 31, 2019
and 2020:
Accounts receivable: 2020- P400,000; 2019- P200,000
Accounts payable: 2020- P150,000; 2019- P300,000
Under accrual method, what is the income before taxes should Iniwan report in its December
31, 2020? *](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92331ce2-d961-4cdd-8b5b-d3d7b408d00e%2Fbece9719-28d1-4a0c-bdfc-a6b22f6a78fa%2F3xzxluna_processed.png&w=3840&q=75)
Transcribed Image Text:Iniwan Corp. maintains its accounting records on the cash basis but restates it financial
statements to accrual basis. Iniwan had P600,000 in cash basis pre-tax income for 2020. The
following information pertains to Iniwan's operations for the year ended December 31, 2019
and 2020:
Accounts receivable: 2020- P400,000; 2019- P200,000
Accounts payable: 2020- P150,000; 2019- P300,000
Under accrual method, what is the income before taxes should Iniwan report in its December
31, 2020? *
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