32 The books of Chicharon Bulaklak Company for the year ended December 31, 2020 showedpretax income of P720,000. In computing the taxable income for income tax purposes, thefollowing temporary differences were taken into account.Depreciation deducted for tax purposes in excess of depreciation recorded in the books-P32,000Income from installment sales reportable for tax purposes in excess of income recognized inthe books- P24,000What amount should Chicharon Bulaklak Company record as current income tax liability atDecember 31, 2020 assuming a corporate income tax rate of 30%. *

Accounting Income = 720000 Less: Excess Depreciation as per tax = 32000 Add: Excess sales reportable…

Answered: What amount should Chicharon Bulaklak…

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

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

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%. *

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