In 2021, Eric Corporation reported P90,000 net income before income taxes. The income tax rate for 2021 was 30 percent. Eric had an unused P60,000 net operating loss carryforward arising in 2020 when the tax rate was 35 percent. The income tax expense Eric would report for 2021 would be

In 2021, Eric Corporation reported P90,000 net income before income taxes. The income tax rate for 2021 was 30 percent. Eric had an unused P60,000 net operating loss carryforward arising in 2020 when the tax rate was 35 percent. The income tax expense Eric would report for 2021 would be

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

1. In 2021, Eric Corporation reported P90,000 net income before income taxes. The income tax rate for 2021 was 30 percent. Eric had an unused P60,000 net operating loss carryforward arising in 2020 when the tax rate was 35 percent. The income tax expense Eric would report for 2021 would be

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