2) X reported a pre-tax income of P5,000,000. The taxable income pertax code does not tally with the income per GAAP. The differences arethe nontaxable income of P500,000, bad debts based on estimateamounting to P300,000, and accrued rent income of P500,000. For thefirst 3 quarters, X made a total tax payment of P1,205,000 at 35% oftaxable income at that time, which is creditable against income tax duecomputed under tax code. X' net tax payable after tax credits isa. 1,505,000b. 440,000C. 370,0004300,000Carlota Company is determining the amount of its pretax financial incomefor 2005 by making adjustment to taxable income from the company's2005 tax return. The tax return indicates taxable income of P15,000,000on which a tax liability of P4,800,000 has been recognized. Following is alist of items that may be required to determine pretax financial incomefrom the amount of taxable income.Accelerated depreciation for income tax purposes was P2,000,000and straight line financial depreciation is P1,500,000.Insurance premium of P100,000 on the life of an officer with LaCarlota Company as beneficiary was not included as a deduction in• Interest on treasury bills was not included in the tax return. Duringthe year, La Carlota received P2,500,000 on these investments.the tax return.3) What was La Carlota Company's pretax financial income?a. P15,500,000b. P18,000,000C. P17,400,0004. P17,900,000

The first question has been answered as per Bartleby's policy

Answered: X' net tax payable after tax credits is

Business

Accounting

X' net tax payable after tax credits is

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

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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

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