Uno Company reported income before tax for the first six months ended June 30, 2021 at P5,000,000. However, the business is seasonal and income before tax for the last six months ended December 31, 2021 is almost certain to be P9,000,000. Income before tax equals taxable income for this entity. The entity operates in a country where income tax on entities is at a rate of 30% if annual income is below P11,000,000 and a tax rate of 35% where annual income exceeds P11,000,000. These tax rates apply to the entire income for the year. What amount should be reported as income tax expense in the interim financial statements for the half year ended June 30, 2021?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 33P
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Uno Company reported income before tax for the first six months ended June 30, 2021 at P5,000,000. However, the business is seasonal and income before tax for the last six months ended December 31, 2021 is almost certain to be P9,000,000. Income before tax equals taxable income for this entity. The entity operates in a country where income tax on entities is at a rate of 30% if annual income is below P11,000,000 and a tax rate of 35% where annual income exceeds P11,000,000. These tax rates apply to the entire income for the year. What amount should be reported as income tax expense in the interim financial statements for the half year ended June 30, 2021?
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