Alain company prepared draft financial statements that showe income before tax for the year ended December 31, 2021 at Pe The board of directors authorized the financial statements for March 20,2022. A manufacturing plant was destroyed by fire o 15, 2022 resulting in a financial loss of P2,500,000. Insurance property amounted to P4,000,000 and the claim was receive February 14, 2022. Repairs will start on April 2022. What amour reported as profit before tax in the financial statements? O 2500000 O 9000000

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 3RE: In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During...
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Alain company prepared draft financial statements that showed the
income before tax for the year ended December 31, 2021 at P6,000,000.
The board of directors authorized the financial statements for issue on
March 20,2022. A manufacturing plant was destroyed by fire on January
15, 2022 resulting in a financial loss of P2,500,000. Insurance for the
property amounted to P4,000,000 and the claim was received on
February 14, 2022. Repairs will start on April 2022. What amount should be
reported as profit before tax in the financial statements? *
2500000
9000000
4000000
6000000
What total amount should be recognized in profit or loss of Sushi Inc. for
the year ended December 31,2021 to reflect non adjusting events? *
4500000
3000000
2500000
1500000
Transcribed Image Text:Alain company prepared draft financial statements that showed the income before tax for the year ended December 31, 2021 at P6,000,000. The board of directors authorized the financial statements for issue on March 20,2022. A manufacturing plant was destroyed by fire on January 15, 2022 resulting in a financial loss of P2,500,000. Insurance for the property amounted to P4,000,000 and the claim was received on February 14, 2022. Repairs will start on April 2022. What amount should be reported as profit before tax in the financial statements? * 2500000 9000000 4000000 6000000 What total amount should be recognized in profit or loss of Sushi Inc. for the year ended December 31,2021 to reflect non adjusting events? * 4500000 3000000 2500000 1500000
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