You were able to extract the following information from the records of Grey Corporation in connection with the audit of Grey’s financial statements for the year ended December 31, 2013: Carrying Amount Tax Base Accounts receivable 1,500,000 1,750,000 Motor vehicles 1,650,000 1,250,000 Provision for warranty 120,000 0 Deposits received in advance 150,000 0 The company uses straight-line method of depreciation for financial reporting purposes and SYD method for income tax purposes Deposits are taxable when received and warranty costs are deductible when paid. An allowance for doubtful accounts of P250,000 has been raised against accounts receivable for accounting purposes, but such accounts are deductible only when written off as uncollectible. Taxable income in 2013 amounted to P1,000,000 while income tax paid for the first three quarters amounted to P175,000. Compute the amount of taxable temporary difference
You were able to extract the following information from the records of Grey Corporation in connection with the audit of Grey’s financial statements for the year ended December 31, 2013:
Carrying Amount Tax Base
Motor vehicles 1,650,000 1,250,000
Provision for warranty 120,000 0
Deposits received in advance 150,000 0
The company uses straight-line method of
Deposits are taxable when received and warranty costs are deductible when paid.
An allowance for doubtful accounts of P250,000 has been raised against accounts receivable for accounting purposes, but such accounts are deductible only when written off as uncollectible.
Taxable income in 2013 amounted to P1,000,000 while income tax paid for the first three quarters amounted to P175,000.
Compute the amount of taxable temporary difference
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