The difference between the book basis and tax basis of the assets and liabilities of Ramen Corporation at the end of 2020 are as follows: Installment accounts receivable: Book Basis- P100,000, Tax Basis- PO Litigation liability: Book Basis- 20,000; Tax Basis- 0 It is estimated that the litigation will be settled in 2021. The difference in installment accounts receivable will result in taxable amount of P60,000 in 2021 and P40,000 in 2022. Ramen Corporation has taxable income of P700,000 in 2020 and is expected to have taxable income in each of the following two years. Income tax rate is 30%. This is the first year of operations of Ramen Corporation. What is the net deferred tax expense/current tax expense/income tax expense of Ramen Corporation for 2020? * , O P24,000/P210,000/P234,000 O P36,000/P210,000/P246,000 O P36,000/P216,000/P252,000 O P24,000/P216,000/P240,000

The difference between the book basis and tax basis of the assets and liabilities of Ramen Corporation at the end of 2020 are as follows: Installment accounts receivable: Book Basis- P100,000, Tax Basis- PO Litigation liability: Book Basis- 20,000; Tax Basis- 0 It is estimated that the litigation will be settled in 2021. The difference in installment accounts receivable will result in taxable amount of P60,000 in 2021 and P40,000 in 2022. Ramen Corporation has taxable income of P700,000 in 2020 and is expected to have taxable income in each of the following two years. Income tax rate is 30%. This is the first year of operations of Ramen Corporation. What is the net deferred tax expense/current tax expense/income tax expense of Ramen Corporation for 2020? * , O P24,000/P210,000/P234,000 O P36,000/P210,000/P246,000 O P36,000/P216,000/P252,000 O P24,000/P216,000/P240,000

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 14P

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