For the year ended December 31, 2006, Grim Company's pretax financial income was P2,000,000 and its taxable income was P1,500,000. the difference is due to the following: Interest income as savings deposit, 700,000 Premium expense on keyman life insurance, (200,000) Total 500,000 The income tax rate is 35%.
For the year ended December 31, 2006, Grim Company's pretax financial income was P2,000,000 and its taxable income was P1,500,000. the difference is due to the following: Interest income as savings deposit, 700,000 Premium expense on keyman life insurance, (200,000) Total 500,000 The income tax rate is 35%.
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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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For the year ended December 31, 2006, Grim Company's pretax financial income was P2,000,000 and its taxable income was P1,500,000. the difference is due to the following:
Interest income as savings deposit, 700,000
Premium expense on keyman life insurance, (200,000)
Total 500,000
The income tax rate is 35%.
In its 2006 income statement, what amount should Grim report as current provision for income tax expense?
a. 525,000
b. 700,000
c. 595,000
d. 770,000
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