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?
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?
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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1. How much is the taxable income for the year?
2. How much is the current tax expense for the year?
Transcribed Image Text: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?
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