Regine Company computed a pre-tax financial income of P6,000,000 for the year ended December 31, 2020. The following differences are noted between taxable and accounting income: · Nontaxable revenue: P600,000 · Nondeductible expense: P200,000 · Warranty provision accrued and expensed in 2020 but tax-deductible when paid: P300,000 · Excess tax depreciation over accounting depreciation: P250,000 · Excess of accounting revenue over tax revenue (timing difference): P200,000 Current tax rate for 2020 is 32% while tax rate for 2021 and forward is 30%. How much is the total tax expense? a. 1,744,000 b. 1,699,000 c. 1,789,000 d. 1,792,000
Regine Company computed a pre-tax financial income of P6,000,000 for the year ended December 31, 2020. The following differences are noted between taxable and accounting income: · Nontaxable revenue: P600,000 · Nondeductible expense: P200,000 · Warranty provision accrued and expensed in 2020 but tax-deductible when paid: P300,000 · Excess tax depreciation over accounting depreciation: P250,000 · Excess of accounting revenue over tax revenue (timing difference): P200,000 Current tax rate for 2020 is 32% while tax rate for 2021 and forward is 30%. How much is the total tax expense? a. 1,744,000 b. 1,699,000 c. 1,789,000 d. 1,792,000
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 20CE
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Question
Regine Company computed a pre-tax financial income of P6,000,000 for the year ended December 31, 2020. The following differences are noted between taxable and accounting income:
· Nontaxable revenue: P600,000
· Nondeductible expense: P200,000
· Warranty provision accrued and expensed in 2020 but tax-deductible when paid: P300,000
· Excess taxdepreciation over accounting depreciation: P250,000
· Excess of accounting revenue over tax revenue (timing difference): P200,000
Current tax rate for 2020 is 32% while tax rate for 2021 and forward is 30%. How much is the total tax expense?
· Nontaxable revenue: P600,000
· Nondeductible expense: P200,000
· Warranty provision accrued and expensed in 2020 but tax-deductible when paid: P300,000
· Excess tax
· Excess of accounting revenue over tax revenue (timing difference): P200,000
Current tax rate for 2020 is 32% while tax rate for 2021 and forward is 30%. How much is the total tax expense?
a. 1,744,000
b. 1,699,000
c. 1,789,000
d. 1,792,000
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