EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - P 36,500 • Interest income received - P 80,500 • Rent received in advance - P 175,000 • Dividend income - P 91,700 • Estimated tax payment in the current year - P 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year -1 • Tax penalties due to late filing on tax return - P 20,000 • P 48,300 Corporate tax rate - 30% Required: 11. How much is the taxable income for the year? 12. How much is the current tax expense for the year? 13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?
EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - P 36,500 • Interest income received - P 80,500 • Rent received in advance - P 175,000 • Dividend income - P 91,700 • Estimated tax payment in the current year - P 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year -1 • Tax penalties due to late filing on tax return - P 20,000 • P 48,300 Corporate tax rate - 30% Required: 11. How much is the taxable income for the year? 12. How much is the current tax expense for the year? 13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.7AP
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Ive been rejected many times. Please answer in good accounting form thankyou.
Transcribed Image Text:Problem 3:
EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the
year. To compute the provision for income tax, the following data are provided:
• Tax depreciation in excess of financial statement amount - P 36,500
• Interest income received - P 80,500
• Rent received in advance - P 175,000
• Dividend income -P 91,700
• Estimated tax payment in the current year - P 65,000
• Provision for bad debts not yet recognized for tax purposes on the current year - P 48,300
• Tax penalties due to late filing on tax return - P 20,000
• Corporate tax rate - 30%
Required:
11. How much is the taxable income for the year?
12. How much is the current tax expense for the year?
13. What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?
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