X' net tax payable after tax credits is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![2) X reported a pre-tax income of P5,000,000. The taxable income per
tax code does not tally with the income per GAAP. The differences are
the nontaxable income of P500,000, bad debts based on estimate
amounting to P300,000, and accrued rent income of P500,000. For the
first 3 quarters, X made a total tax payment of P1,205,000 at 35% of
taxable income at that time, which is creditable against income tax due
computed under tax code. X' net tax payable after tax credits is
a. 1,505,000
b. 440,000
C. 370,000
4300,000
Carlota Company is determining the amount of its pretax financial income
for 2005 by making adjustment to taxable income from the company's
2005 tax return. The tax return indicates taxable income of P15,000,000
on which a tax liability of P4,800,000 has been recognized. Following is a
list of items that may be required to determine pretax financial income
from the amount of taxable income.
Accelerated depreciation for income tax purposes was P2,000,000
and straight line financial depreciation is P1,500,000.
Insurance premium of P100,000 on the life of an officer with La
Carlota Company as beneficiary was not included as a deduction in
• Interest on treasury bills was not included in the tax return. During
the year, La Carlota received P2,500,000 on these investments.
the tax return.
3) What was La Carlota Company's pretax financial income?
a. P15,500,000
b. P18,000,000
C. P17,400,000
4. P17,900,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3bf8d62-7101-406c-85a3-b90beb20f929%2Fa7822c08-283a-4817-88dc-d3bd4c44bc7b%2F96ojiqg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2) X reported a pre-tax income of P5,000,000. The taxable income per
tax code does not tally with the income per GAAP. The differences are
the nontaxable income of P500,000, bad debts based on estimate
amounting to P300,000, and accrued rent income of P500,000. For the
first 3 quarters, X made a total tax payment of P1,205,000 at 35% of
taxable income at that time, which is creditable against income tax due
computed under tax code. X' net tax payable after tax credits is
a. 1,505,000
b. 440,000
C. 370,000
4300,000
Carlota Company is determining the amount of its pretax financial income
for 2005 by making adjustment to taxable income from the company's
2005 tax return. The tax return indicates taxable income of P15,000,000
on which a tax liability of P4,800,000 has been recognized. Following is a
list of items that may be required to determine pretax financial income
from the amount of taxable income.
Accelerated depreciation for income tax purposes was P2,000,000
and straight line financial depreciation is P1,500,000.
Insurance premium of P100,000 on the life of an officer with La
Carlota Company as beneficiary was not included as a deduction in
• Interest on treasury bills was not included in the tax return. During
the year, La Carlota received P2,500,000 on these investments.
the tax return.
3) What was La Carlota Company's pretax financial income?
a. P15,500,000
b. P18,000,000
C. P17,400,000
4. P17,900,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
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](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education