Bestlook Company provided the following information for its first year of operaticDecember 31, 2019 in connection with the preparation of it income tax return:Accounting incomeNondeductible expensesP8,000,000400,000600,000Nontaxable revenueDeferred income on installment sales included infinancial income but taxable in 2020900,000200,000600,000Doubtful accounts recordedFinancial depreciationTax depreciationEstimated warranty cost accrued in 2019 but notdeductible for tax purposes until paidIncome tax rate (current and future)a. How much is the current tax expense?700,000200,00035%b. How much is the deferred tax asset?c. How much is the deferred tax liability?d. How much is the total tax expense?

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Bestlook Company provided the following information for its first year of operati December 31, 2019 in connection with the preparation of it income tax return: Accounting income Nondeductible expenses Nontaxable revenue P8,000,000 400,000 600,000 Deferred income on installment sales included in 900,000 200,000 600,000 700,000 financial income but taxable in 2020 Doubtful accounts recorded Financial depreciation Tax depreciation Estimated warranty cost accrued in 2019 but not deductible for tax purposes until paid Income tax rate (current and future) a. How much is the current tax expense? b. How much is the deferred tax asset? c. How much is the deferred tax liability? d. How much is the total tax expense? 200,000 35%

Bestlook Company provided the following information for its first year of operati December 31, 2019 in connection with the preparation of it income tax return: Accounting income Nondeductible expenses Nontaxable revenue P8,000,000 400,000 600,000 Deferred income on installment sales included in 900,000 200,000 600,000 700,000 financial income but taxable in 2020 Doubtful accounts recorded Financial depreciation Tax depreciation Estimated warranty cost accrued in 2019 but not deductible for tax purposes until paid Income tax rate (current and future) a. How much is the current tax expense? b. How much is the deferred tax asset? c. How much is the deferred tax liability? d. How much is the total tax expense? 200,000 35%

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 4BCRQ

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