he Chief Financial Officer of ABC Company has presented the following information in line with the 2020 audit of ABC’s financial statements: · Pre-tax financial income: P9,700,000 · Interest income on tax-exempt municipal bonds: 300,000 · Depreciation claimed on the tax return in excess of financial depreciation: 500,000 · Warranty expense reported in the income statement: 200,000 · Actual warranty costs paid: 50,000 Income tax rate is 30%. At the beginning of the current year, the entity reported a deferred tax asset is zero and the deferred tax liability at P90,000. How much is the total tax expense for the current year? P 2,550,000 P 2,820,000 P 2,730,000 P 2,700,000
he Chief Financial Officer of ABC Company has presented the following information in line with the 2020 audit of ABC’s financial statements: · Pre-tax financial income: P9,700,000 · Interest income on tax-exempt municipal bonds: 300,000 · Depreciation claimed on the tax return in excess of financial depreciation: 500,000 · Warranty expense reported in the income statement: 200,000 · Actual warranty costs paid: 50,000 Income tax rate is 30%. At the beginning of the current year, the entity reported a deferred tax asset is zero and the deferred tax liability at P90,000. How much is the total tax expense for the current year? P 2,550,000 P 2,820,000 P 2,730,000 P 2,700,000
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 48P
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Question
he Chief Financial Officer of ABC Company has presented the following information in line with the 2020 audit of ABC’s financial statements:
· Pre-tax financial income: P9,700,000
· Interest income on tax-exempt municipal bonds: 300,000
·Depreciation claimed on the tax return in excess of financial depreciation: 500,000
· Warranty expense reported in the income statement: 200,000
· Actual warranty costs paid: 50,000
Income tax rate is 30%. At the beginning of the current year, the entity reported adeferred tax asset is zero and the deferred tax liability at P90,000.
How much is the total tax expense for the current year?
· Pre-tax financial income: P9,700,000
· Interest income on tax-exempt municipal bonds: 300,000
·
· Warranty expense reported in the income statement: 200,000
· Actual warranty costs paid: 50,000
Income tax rate is 30%. At the beginning of the current year, the entity reported a
How much is the total tax expense for the current year?
P 2,550,000
P 2,820,000
P 2,730,000
P 2,700,000
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