Apple 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? A.P480,000 B.P320,000 C.P224,000
Apple 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? A.P480,000 B.P320,000 C.P224,000
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Apple 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?
A.P480,000
B.P320,000
C.P224,000
D.P336,000
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Author:
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