9. Black Co., organized on January 2, 20x0, had pretax financial statement income c P500,000 and taxable income of P800,000 for the year ended December 31, 20×C The only temporary differences are accrued product warranty costs, which Blach expects to pay as follows: 20x1 P100,000 20x2 50,000 20x3 50,000 20x4 100,000 The enacted income tax rates are 25% for 20x0, 30% for 20x1 through 20x3, and 35% for 20x4. Black believes that future years' operations will produce profits. In its December 31, 20x0, balance sheet, what amount should Black report as deferred tax
9. Black Co., organized on January 2, 20x0, had pretax financial statement income c P500,000 and taxable income of P800,000 for the year ended December 31, 20×C The only temporary differences are accrued product warranty costs, which Blach expects to pay as follows: 20x1 P100,000 20x2 50,000 20x3 50,000 20x4 100,000 The enacted income tax rates are 25% for 20x0, 30% for 20x1 through 20x3, and 35% for 20x4. Black believes that future years' operations will produce profits. In its December 31, 20x0, balance sheet, what amount should Black report as deferred tax
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 3BCRQ
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