An entity was organized on January 1, 2021. The entity had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2022. The enacted tax rates are 20% for 2021 and 25% for 2022 and thereafter. What amount should be reported as total income tax expense in the income statement for 2021?

An entity was organized on January 1, 2021. The entity had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2022. The enacted tax rates are 20% for 2021 and 25% for 2022 and thereafter. What amount should be reported as total income tax expense in the income statement for 2021?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 48P

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