At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between accounting income and taxable income as reflected in the table below. The estimated litigation expense of P6,000,000 will be deductible in 2013 when it is expected to be actually paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. Assuming no payment has been paid for income taxes, what is the income tax payable at the end of 2012? How much is deferred tax asset at D

At the end of 2012, its first year of operations, Glow Company prepared a reconciliation between accounting income and taxable income as reflected in the table below. The estimated litigation expense of P6,000,000 will be deductible in 2013 when it is expected to be actually paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. Assuming no payment has been paid for income taxes, what is the income tax payable at the end of 2012? How much is deferred tax asset at D

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 30CE

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