ABC Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2020- P1,200,000 Tax exempt interest- P100,000 Taxable temporary difference - P300,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2020 is 28%. What amount should be reported in its 2020 income statement as the current portion of its provision for income taxes?
ABC Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2020- P1,200,000 Tax exempt interest- P100,000 Taxable temporary difference - P300,000 The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2020 is 28%. What amount should be reported in its 2020 income statement as the current portion of its provision for income taxes?
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Transcribed Image Text:ABC Corporation prepared the following reconciliation for its first year of operations:
Pretax financial income for 2020- P1,200,000
Tax exempt interest- P100,000
Taxable temporary difference - P300,000
The temporary difference will reverse evenly over the next two years at an enacted tax rate of
40%. The enacted tax rate for 2020 is 28%.
What amount should be reported in its 2020 income statement as the current portion of
its provision for income taxes?
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