Empress Company provided the following data for the current year: Retained earnings, January 1 Dividends declared Sales Dividend income Inventory, January 1 Purchases Salaries Contribution to employees' penaion fund Delivery Miscellaneous expense Doubtful accounta expense Depreciation expense Loss on aale of investment Income from discontinued operation, net of tax Income tax expense Inventory on December 31 at cost Net realizable value of inventory 3,000,000 1,000,000 8,400,000 100,000 1,000,000 3.700,000 1,540,000 300,000 200,000 120,000 10,000 80,000 100,000 500,000 150,000 850,000 700,000 1. What amount should be reported as cost of goods sold? a. 3,850,000 b. 4,000,000 c. 4,150,000 d. 4,700,000 2. What amount should be reported as total expenses before income tax? a. 2,350,000 b. 2,500,000 C. 2,260,000 d. 2,050,000 3. What amount should be reported aa net income for the current year? a. 2,000,000 b. 2,500,000 c. 1,500,000 d. 2,650,000 4. What amount should be reported an retained earnings on December 317 a.4,000,000 b. 4,500,000 C. 3,500,000 d. 4,650,000

Empress Company provided the following data for the current year: Retained earnings, January 1 Dividends declared Sales Dividend income Inventory, January 1 Purchases Salaries Contribution to employees' penaion fund Delivery Miscellaneous expense Doubtful accounta expense Depreciation expense Loss on aale of investment Income from discontinued operation, net of tax Income tax expense Inventory on December 31 at cost Net realizable value of inventory 3,000,000 1,000,000 8,400,000 100,000 1,000,000 3.700,000 1,540,000 300,000 200,000 120,000 10,000 80,000 100,000 500,000 150,000 850,000 700,000 1. What amount should be reported as cost of goods sold? a. 3,850,000 b. 4,000,000 c. 4,150,000 d. 4,700,000 2. What amount should be reported as total expenses before income tax? a. 2,350,000 b. 2,500,000 C. 2,260,000 d. 2,050,000 3. What amount should be reported aa net income for the current year? a. 2,000,000 b. 2,500,000 c. 1,500,000 d. 2,650,000 4. What amount should be reported an retained earnings on December 317 a.4,000,000 b. 4,500,000 C. 3,500,000 d. 4,650,000

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 17E: Intraperiod Tax Allocation Wright Company reports the following information for the year ended...

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CASE IV JKL Company provided the following information to its accountant to determine the tax due for the current year 2021 as well as any tax consequences of items that cause difference between financial and taxable income: Accounting income before tax, P15,600,000 Accounting Depreciation, P500,000 Litigation loss accrued during the year, P80,000, taxable only when paid. Tax depreciation, P1,500,000 Accrued liability on employees’ health care P250,000 Development cost of computer software, P3,000,000. The computer software is expected to be useful for 3 years starting this year. Nondeductible expenses, P1,250,000 Nontaxable revenue, P2,100,000 Revenue subject to 20% tax rate, P750,000 Bad debts expense for the period, P75,000 Bad debts written off during the year, P45,000 Gross income of installment sales of P450,000 (taxable when collected expected on 2022) The tax rate applicable for this year onwards is 30%. QUESTION: 1. Compute the taxable income