What amount should Chicharon Bulaklak Company record as current income tax liability at December 31, 2020 assuming a corporate income tax rate of 30%. *

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

32

The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed
pretax income of P720,000. In computing the taxable income for income tax purposes, the
following temporary differences were taken into account.
Depreciation deducted for tax purposes in excess of depreciation recorded in the books-
P32,000
Income from installment sales reportable for tax purposes in excess of income recognized in
the books- P24,000
What amount should Chicharon Bulaklak Company record as current income tax liability at
December 31, 2020 assuming a corporate income tax rate of 30%. *
Transcribed Image Text:The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showed pretax income of P720,000. In computing the taxable income for income tax purposes, the following temporary differences were taken into account. Depreciation deducted for tax purposes in excess of depreciation recorded in the books- P32,000 Income from installment sales reportable for tax purposes in excess of income recognized in the books- P24,000 What amount should Chicharon Bulaklak Company record as current income tax liability at December 31, 2020 assuming a corporate income tax rate of 30%. *
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education