WhyRU Company usually depreciates its equipment using straight line method for accounting purposes, bu for tax purposes its sum-of-the-years method. WhyRU Company acquired the equipment through purchas amounting to P2,400,000 on January 1,2018. Assume a tax rate of 30%. Useful life is 4 years. WhyRU Company made the following income in its income tax return available through reports for 2018 P800,000; 2019 – P890,0000; 2020 – P1,200,000; 2021 – P1,500,000 There is no other differences betwee WhyRU's accounting income and taxable income for years 2018, 2019, 2020 and 2021 other than for th difference in depreciation for the couinment described
WhyRU Company usually depreciates its equipment using straight line method for accounting purposes, bu for tax purposes its sum-of-the-years method. WhyRU Company acquired the equipment through purchas amounting to P2,400,000 on January 1,2018. Assume a tax rate of 30%. Useful life is 4 years. WhyRU Company made the following income in its income tax return available through reports for 2018 P800,000; 2019 – P890,0000; 2020 – P1,200,000; 2021 – P1,500,000 There is no other differences betwee WhyRU's accounting income and taxable income for years 2018, 2019, 2020 and 2021 other than for th difference in depreciation for the couinment described
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...
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