(a) (b) EQUIRED: (c) Compute for Daniel's pre-tax accounting profit for the years 2020, 2021, 2022 and 2023. Compute for the balance of deferred tax liability at the end of 2020, 2021, 2022 and 2023. Prepare entries for current income taxes and deferred income taxes for years 2020, 2021, 2022 and 2023. (d) . Compute for the total income tax expense for years 2020, 2021, 2022 and 2023. (e) Compute the profit for years 2020, 2021, 2022 and 2023.
(a) (b) EQUIRED: (c) Compute for Daniel's pre-tax accounting profit for the years 2020, 2021, 2022 and 2023. Compute for the balance of deferred tax liability at the end of 2020, 2021, 2022 and 2023. Prepare entries for current income taxes and deferred income taxes for years 2020, 2021, 2022 and 2023. (d) . Compute for the total income tax expense for years 2020, 2021, 2022 and 2023. (e) Compute the profit for years 2020, 2021, 2022 and 2023.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 5RE: Turnip Company purchased an asset at a cost of 10,000 with a 10-year life during the current year....
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a. Compute for Daniel's pre-tax accounting profit for the years 2020, 2021, 2022, and 2023.
b. Compute for the belance of
c. Prepare
Transcribed Image Text:Daniel Company purchased an equipment costing P2,000,000
on January 1, 2020. The equipment has an estimated useful life
of four years, with no residual value. Daniel Company
depreciates
this equipment using straight-line method for
accounting purposes, but uses sum-of-the-years' digit method
for tax purposes. Assume a 30% tax rate for all years.
Daniel Company reports the following income in its income tax
return for the years 2020, 2021, 2022 and 2023:
(a)
Other than for the difference in depreciation for the equipment
described, there is no other difference between Daniel's
accounting income and taxable income for years 2020, 2021,
2022 and 2023.
REQUIRED:
(b)
(c)
(d) .
2020
2021
2022
2023
(e)
P 800,000
890,000
1,200,000
1,500,000
Compute for Daniel's pre-tax accounting profit for the years
2020, 2021, 2022 and 2023.
Compute for the balance of deferred tax liability at the end
of 2020, 2021, 2022 and 2023.
Prepare entries for current income taxes and deferred
income taxes for years 2020, 2021, 2022 and 2023.
Compute for the total income tax expense for years 2020,
2021, 2022 and 2023.
Compute the profit for years 2020, 2021, 2022 and 2023.
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