Delta Cron, the president of the VARIANT COMPANY, receives 15% of the net income (after deducting taxes but before bonuses) as a bonus arrangement with the company. For the current year, the net income after deducting the provision for income taxes and bonus is P5,000,000 The bonus is not deductible for tax purposes, and the tax rate is 20% Compute the appropriate provision for income tax for the year.
Delta Cron, the president of the VARIANT COMPANY, receives 15% of the net income (after deducting taxes but before bonuses) as a bonus arrangement with the company. For the current year, the net income after deducting the provision for income taxes and bonus is P5,000,000 The bonus is not deductible for tax purposes, and the tax rate is 20% Compute the appropriate provision for income tax for the year.
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 3RE: In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During...
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Delta Cron, the president of the VARIANT COMPANY, receives 15% of the net income (after deducting taxes but before bonuses) as a bonus arrangement with the company. For the current year, the net income after deducting the provision for income taxes and bonus is P5,000,000 The bonus is not deductible for tax purposes, and the tax rate is 20%
Compute the appropriate provision for income tax for the year.
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