The following information is taken from Pork Humba Company’s 2020 profit and loss: Profit before income taxes- P3,000,000 Income tax expense Current- P1,128,000 Deferred- P84,000 Profit- P1,788,000 Pork Humba Company’s first year of operation was 2020. The company has a 30% tax rate. Management decided to use accelerated depreciation for tax purposes and the straight-line method for financial reporting purposes. The amount charged to depreciation expense in 2020 was P1,200,000. Assuming the temporary difference existed between the book income and taxable income, what amount did Pork Humba Company deduct for depreciation on its tax return for 2020?
The following information is taken from Pork Humba Company’s 2020 profit and loss: Profit before income taxes- P3,000,000 Income tax expense Current- P1,128,000 Deferred- P84,000 Profit- P1,788,000 Pork Humba Company’s first year of operation was 2020. The company has a 30% tax rate. Management decided to use accelerated depreciation for tax purposes and the straight-line method for financial reporting purposes. The amount charged to depreciation expense in 2020 was P1,200,000. Assuming the temporary difference existed between the book income and taxable income, what amount did Pork Humba Company deduct for depreciation on its tax return for 2020?
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 70IIP
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The following information is taken from Pork Humba Company’s 2020
Profit before income taxes- P3,000,000
Income tax expense
Current- P1,128,000
Deferred- P84,000
Profit- P1,788,000
Pork Humba Company’s first year of operation was 2020. The company has a 30% tax rate. Management decided to use accelerated
Assuming the temporary difference existed between the book income and taxable income, what amount did Pork Humba Company deduct for depreciation on its tax return for 2020?
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