IT Company reported the following results for the year ended December 31, 2020, its first year of operations: Income (per books before income taxes)- P750,000 Taxable income-P1,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should IT record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 40% in 2020 and 35% in 2021? A.P157,500 deferred tax liability B.P157,500 deferred tax asset C.P180,000 deferred tax liability D.P180,000 deferred tax asset
IT Company reported the following results for the year ended December 31, 2020, its first year of operations: Income (per books before income taxes)- P750,000 Taxable income-P1,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should IT record as a net deferred tax asset or liability for the year ended December 31, 2020, assuming that the enacted tax rates in effect are 40% in 2020 and 35% in 2021? A.P157,500 deferred tax liability B.P157,500 deferred tax asset C.P180,000 deferred tax liability D.P180,000 deferred tax asset
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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IT Company reported the following results for the year ended December 31, 2020, its first year of operations:
Income (per books before income taxes)- P750,000
Taxable income-P1,200,000
The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2021. What should IT record as a net
A.P157,500 deferred tax liability
B.P157,500 deferred tax asset
C.P180,000 deferred tax liability
D.P180,000 deferred tax asset
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