David Company, organized on January 1, 2021, had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2022. The enacted tax rates are 30% for 2021 and 25% for 2022 and thereafter. What amount should be reported as total income tax expense in the income statement for 2021? 1,600,000 2,100,000 1,500,000 1,250,000
David Company, organized on January 1, 2021, had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2022. The enacted tax rates are 30% for 2021 and 25% for 2022 and thereafter. What amount should be reported as total income tax expense in the income statement for 2021? 1,600,000 2,100,000 1,500,000 1,250,000
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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David Company, organized on January 1, 2021, had pretax accounting income of P5,000,000 and taxable income of P7,000,000 for the current year. The only temporary difference is accrued product warranty cost that is expected to be paid in 2022. The enacted tax rates are 30% for 2021 and 25% for 2022 and thereafter. What amount should be reported as total income tax expense in the income statement for 2021?
1,600,000
2,100,000
1,500,000
1,250,000
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