ABC Corporation's cumulative balance of RCIT, MCIT, taxes withheld, excess MCIT and excess withholding taxes from prior year(s) were provided as follows:20202019QUARTERRCITMCITTaxes withheld Excess MCIT Excess withholding tax1st300,000 240,000 20,00050,00020,0002nd550,000 350,000 35,000750,000 760,000 53.000800,000 810.000 67,0003rd4thHow much is the income tax payable on the 4th quarter?

Solution:- Given, ABC Corporation's RCIT, MCIT, excess MCIT and excess withholding taxes from prior…

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Business

Accounting

How much is the income tax payable on the 4th quarter?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 10P

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

ABC Corporation's cumulative balance of RCIT, MCIT, taxes withheld, excess MCIT and excess withholding taxes from prior year(s) were provided as follows:
2020
2019
QUARTER
RCIT
MCIT
Taxes withheld Excess MCIT Excess withholding tax
1st
300,000 240,000 20,000
50,000
20,000
2nd
550,000 350,000 35,000
750,000 760,000 53.000
800,000 810.000 67,000
3rd
4th
How much is the income tax payable on the 4th quarter?

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