An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations. The following are the differences that cause financial income to differ from taxable income excess tax depreciation over accounting depreciation, P 500,000, revenue collected for tax in excess of accounting revenue, P 2,000,000 and tax penalties as an expense in the income statement, P 200,000. The income tax rate is 30% 1. What total tax expense should be reported for 2019? a. 1,890,000 b. 2,400,000 c. 1,950,000 d. 2,010,000 2. What is the net deferred tax expense or benefit for 2019? a. 450,000 expense b. 450,000 benefit c. 510,000 expense d. 510,000 benefit
An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations. The following are the differences that cause financial income to differ from taxable income excess tax depreciation over accounting depreciation, P 500,000, revenue collected for tax in excess of accounting revenue, P 2,000,000 and tax penalties as an expense in the income statement, P 200,000. The income tax rate is 30% 1. What total tax expense should be reported for 2019? a. 1,890,000 b. 2,400,000 c. 1,950,000 d. 2,010,000 2. What is the net deferred tax expense or benefit for 2019? a. 450,000 expense b. 450,000 benefit c. 510,000 expense d. 510,000 benefit
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 14P
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Question
An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations.
The following are the differences that cause financial income to differ from taxable income
excess tax
tax in excess of accounting revenue, P 2,000,000 and tax penalties as an expense in the
income statement, P 200,000. The income tax rate is 30%
1. What total tax expense should be reported for 2019?
a. 1,890,000
b. 2,400,000
c. 1,950,000
d. 2,010,000
2. What is the net
a. 450,000 expense
b. 450,000 benefit
c. 510,000 expense
d. 510,000 benefit
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