Cris Company reported the following results for the year ended December 31, 2020, its first year of operations: · Income (per books before income taxes)- P750,000 · Taxable income-P1,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should Cris record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 40% in 2020 and 35% in 2021?
Cris Company reported the following results for the year ended December 31, 2020, its first year of operations: · Income (per books before income taxes)- P750,000 · Taxable income-P1,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should Cris record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 40% in 2020 and 35% in 2021?
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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Cris Company reported the following results for the year ended December 31, 2020, its first year of operations:
· Income (per books before income taxes)- P750,000
· Taxable income-P1,200,000
The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should Cris record as a net
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