Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 - 30% 2020 - 32% 2021 - 34% 2022 - 36% The reporting for this temporary difference at December 31, 2019 would be a A. deferred tax liability of P244,800. B. deferred tax asset of P216,000. C. deferred tax asset of P244,800. D. deferred tax liability of P216,000.
Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows: 2019 - 30% 2020 - 32% 2021 - 34% 2022 - 36% The reporting for this temporary difference at December 31, 2019 would be a A. deferred tax liability of P244,800. B. deferred tax asset of P216,000. C. deferred tax asset of P244,800. D. deferred tax liability of P216,000.
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 4MC: Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the...
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Shirmp Tempura Company reported an excess of warranty expense over warranty deductions of P720,000 for the year ended December 31, 2019. This temporary difference will reverse in equal amounts over the years 2020 through 2022. The enacted tax rates are as follows:
2019 - 30%
2020 - 32%
2021 - 34%
2022 - 36%
The reporting for this temporary difference at December 31, 2019 would be a
A. deferred tax liability of P244,800.
B. deferred tax asset of P216,000.
C. deferred tax asset of P244,800.
D. deferred tax liability of P216,000.
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