At the end of the first year of operations. an entity had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The tax rate is 30%. What is the net deferred tax expense or benefit for the current year?
At the end of the first year of operations. an entity had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The tax rate is 30%. What is the net deferred tax expense or benefit for the current year?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter13: Corporations: Earning & Profits And Distributions
Section: Chapter Questions
Problem 13P
Related questions
Question
At the end of the first year of operations. an entity had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The tax rate is 30%.
What is the net
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning