EL Co. reported net income for the current year 2021 at ₱560,000 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 - ₱ 36,500 • Interest income received - ₱ 80,500 • Rent received in advance - ₱ 175,000 • Dividend income - ₱ 91,700 • Estimated tax payment in the current year - ₱ 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300 • Tax penalties due to late filing on tax return - ₱ 20,000 • Corporate tax rate – 30% Required: 14. What is the total income tax expense for the year? 15. What is the net income after tax?

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
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EL Co. reported net income for the current year 2021 at ₱560,000 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 - ₱ 36,500
• Interest income received - ₱ 80,500
• Rent received in advance - ₱ 175,000
• Dividend income - ₱ 91,700
• Estimated tax payment in the current year - ₱ 65,000
• Provision for bad debts not yet recognized for tax purposes on the current year - ₱ 48,300
• Tax penalties due to late filing on tax return - ₱ 20,000
• Corporate tax rate – 30%

Required:

14. What is the total income tax expense for the year?
15. What is the net income after tax?

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