What is the amount of income tax payable for 2019?What is the company's financial income subject to tax? ABC Company's income statement for the year ended December 31,2019 shows pretax incomeof P 2,000,000. The company's tax rate for 2019 IS 30%. The following items are treateddifferently in the tax return and in the accounting records:Tax returnAccounting recordsRent RevenueP 2,180,000P 240,000Depreciation expense560,000440,000Premiums on officer's life insurance180,000

Solution Concept Financial income is the income as per the income statement prepared by the company…

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What is the amount of income tax payable for 2019? What is the company's financial income subject to tax?

SWFT Individual Income Taxes

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ISBN:9780357391365

Author:YOUNG

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Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 31CE

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Question

What is the amount of income tax payable for 2019?

What is the company's financial income subject to tax?

ABC Company's income statement for the year ended December 31,2019 shows pretax income
of P 2,000,000. The company's tax rate for 2019 IS 30%. The following items are treated
differently in the tax return and in the accounting records:
Tax return
Accounting records
Rent Revenue
P 2,180,000
P 240,000
Depreciation expense
560,000
440,000
Premiums on officer's life insurance
180,000

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