d in advance---------------------------------------------150,000 Interest income on time deposit (permanent difference) ----------200,000 Depreciation deducted for income tax purposes in excess of depreciation for financial statement purposes -------------------------------------100,000 Estimated tax payment in the current year -------------------------125,000 Income tax rate------------------------------------------------------------30%
d in advance---------------------------------------------150,000 Interest income on time deposit (permanent difference) ----------200,000 Depreciation deducted for income tax purposes in excess of depreciation for financial statement purposes -------------------------------------100,000 Estimated tax payment in the current year -------------------------125,000 Income tax rate------------------------------------------------------------30%
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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Question
Dunn Company reported P900,000 income before provisions for income tax during the current year.
To compute the provision for income tax, the following data are provided:
Rent received in advance---------------------------------------------150,000
Interest income on time deposit (permanent difference) ----------200,000
Estimated tax payment in the current year -------------------------125,000
Income tax rate------------------------------------------------------------30%
What amount of income tax payable should be reported at year-end?
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