The following are the carrying amounts and tax bases for assets and liabilities of MNQ Company as December 31,2021. Carrying Amount Tax Base Cash 500,000 500,000 Trade and other receivables (net) 1,500,000 1,780,000 Property, plant and equipment (net) 4,500,000 2,800,000 Trade and other payables 2,000,000 2,000,000 Accrued warranty obligations 800,000 0 Any difference in carrying amount and tax basis is a temporary difference. Taxable income for 2021 is P1,800,000. The December 31, 2020 statement of financial position showed deferred tax asset of P300,000 ad deferred tax liability of P240,000. Income tax payments during the year 2021 amounted to P400,000, including P150,000 payment relating to 2020 taxable income. Any resulting deferred tax asset is fully realizable. Income tax rate is 30%. How much is the total income expense recorded for the year ended December 31, 2021?
The following are the carrying amounts and tax bases for assets and liabilities of MNQ Company as
December 31,2021.
|
|
Carrying Amount |
Tax Base |
|
Cash |
500,000 |
500,000 |
|
Trade and other receivables (net) |
1,500,000 |
1,780,000 |
|
Property, plant and equipment (net) |
4,500,000 |
2,800,000 |
|
Trade and other payables |
2,000,000 |
2,000,000 |
|
Accrued warranty obligations |
800,000 |
0 |
|
|
|
|
Any difference in carrying amount and tax basis is a temporary difference. Taxable income for 2021 is P1,800,000. The December 31, 2020
How much is the total income expense recorded for the year ended December 31, 2021?
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