Problem 1: JAY Co. reported net income for the current year 2021 at P2,395,000 before taxes. Included in the determination of the said net income were: Non-deductible expenses Accrued warranty expenses Rental payments made in advance Advance collections from customers 319,200 ▸ 54,000 ℗ 210,000 171,500 P125,800 ℗ 65,000 Non-taxable income Provision for probable losses The income tax rate is 30% and is not expected to change in the future. Required: 4. What is the total deferred tax aplity to be presented in the 2021 Statement of Financial Position? 5. Assuming that the expected income tax rate for the following year is 32%, what is the total tax expense? 6. Assuming that the expected income tax rate for the following year is 32%, what is the total deferred tax liability?
Problem 1: JAY Co. reported net income for the current year 2021 at P2,395,000 before taxes. Included in the determination of the said net income were: Non-deductible expenses Accrued warranty expenses Rental payments made in advance Advance collections from customers 319,200 ▸ 54,000 ℗ 210,000 171,500 P125,800 ℗ 65,000 Non-taxable income Provision for probable losses The income tax rate is 30% and is not expected to change in the future. Required: 4. What is the total deferred tax aplity to be presented in the 2021 Statement of Financial Position? 5. Assuming that the expected income tax rate for the following year is 32%, what is the total tax expense? 6. Assuming that the expected income tax rate for the following year is 32%, what is the total deferred tax liability?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 12P
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