Lyons company deducts insurance expense of P84,000 for tax purposes in 2015, but the expense is not yet recognized for accounting purposes. In 2016, 2017, and 2018, no insurance expense will be deducted for tax purposes, but P28,000 of insurance expense will be deducted for tax purposes, but P28,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons company has a tax rate of 40% and income taxes payable of P72,000 at the end of 2015. There were no deferred taxes at the beginning of 2015. The deferred tax liability at the end of 2015 is?
Lyons company deducts insurance expense of P84,000 for tax purposes in 2015, but the expense is not yet recognized for accounting purposes. In 2016, 2017, and 2018, no insurance expense will be deducted for tax purposes, but P28,000 of insurance expense will be deducted for tax purposes, but P28,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons company has a tax rate of 40% and income taxes payable of P72,000 at the end of 2015. There were no deferred taxes at the beginning of 2015. The deferred tax liability at the end of 2015 is?
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 12P
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Lyons company deducts insurance expense of P84,000 for tax purposes in 2015, but the expense is not yet recognized for accounting purposes. In 2016, 2017, and 2018, no insurance expense will be deducted for tax purposes, but P28,000 of insurance expense will be deducted for tax purposes, but P28,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons company has a tax rate of 40% and income taxes payable of P72,000 at the end of 2015. There were no
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