Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...

See similar textbooks

n December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. a. What is the amount of taxable temporary difference? * b. What is the amount of total deductible temporary difference? * c. Compute for the current tax expense. * d. Compute for the deferred tax expense. * e. What is the amount of deferred tax asset? * f. Compute for the net income after tax. *

Oh no! Our expert couldn't answer your question.

Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience.

Here's what the expert had to say:

Hi and thanks for your question! Unfortunately it looks incomplete. Please resubmit the question with the tax rate. We've credited a question back to your account. Apologies for the inconvenience.

Ask Your Question Again

8 of 10 questions left

until 1/10/21

Question

On December 31, 2020, Landmark Company reported the following: Income before tax for accounting purposes, P11,850,000; Rent expense for financial accounting purposes is P1,500,000 while rent expense for tax purposes is P1,050,000; Tax depreciation is P3,000,000 while accounting depreciation is P1,500,000; Loss on a case incurred but not yet paid so tax deductible in the future is P600,000. income tax rate is 30%

a. What is the amount of taxable temporary difference? *

b. What is the amount of total deductible temporary difference? *

c. Compute for the current tax expense. *

d. Compute for the deferred tax expense. *

e. What is the amount of deferred tax asset? *

f. Compute for the net income after tax. *

Expert Solution

Step by step

Solved in 3 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions