s Co. has a pretax profit of P2,000,000. The income tax rate20% There were no temporary differences at the start of thevear. The only temporary differences at year-end relate to thefollowing:Carrying amountТаx baseTrade receivables1,000,000Equipment, net.Accrued expenses2,000,0001,200,000400,000Requirements: Compute for the following:a. Deferred tax liability and deferred tax assetb. Income tax expense and current tax expensec. Deferred tax expense/benefitd. Provide the journal entry.

Deferred Tax Liability: Deferred tax liability is a liability that is created due to a…

pretax profit of P2,000,000. The income tax rate 2 Bus Co. has a The only temporary differences at year-end relate to the year. following: Carrying amount Tax base Trade receivables Equipment, net. Accrued expenses 1,000,000 2,000,000 400,000 1,200,000 Requirements: Compute for the following: a. Deferred tax liability and deferred tax asset b. Income tax expense and current tax expense c. Deferred tax expense/benefit d. Provide the journal entry.

pretax profit of P2,000,000. The income tax rate 2 Bus Co. has a The only temporary differences at year-end relate to the year. following: Carrying amount Tax base Trade receivables Equipment, net. Accrued expenses 1,000,000 2,000,000 400,000 1,200,000 Requirements: Compute for the following: a. Deferred tax liability and deferred tax asset b. Income tax expense and current tax expense c. Deferred tax expense/benefit d. Provide the journal entry.

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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...

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