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: 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 ₱560,000 before provision of income tax during the
year. To compute the provision for income tax, the following data are provided:
• Tax
• 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
• Tax penalties due to late filing on tax return - ₱ 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
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