Palmer Co. had a deferred tax liability balance due to a temporary difference at the beginning of 2022 related to P600,000 of excess depreciation. In December of 2022, a new income tax act is signed into law that lowers the corporate rate from 40% to 35%, effective January 1, 2024. If taxable amounts related to the temporary difference are scheduled to be reversed by P300,000 for both 2023 and 2024, Palmer should increase or decrease deferred tax liability by what amount? Decrease by P30,000 Decrease by P15,000 Increase by P15,000 Increase by P30,000
Palmer Co. had a deferred tax liability balance due to a temporary difference at the beginning of 2022 related to P600,000 of excess depreciation. In December of 2022, a new income tax act is signed into law that lowers the corporate rate from 40% to 35%, effective January 1, 2024. If taxable amounts related to the temporary difference are scheduled to be reversed by P300,000 for both 2023 and 2024, Palmer should increase or decrease deferred tax liability by what amount? Decrease by P30,000 Decrease by P15,000 Increase by P15,000 Increase by P30,000
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
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...
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Palmer Co. had a deferred tax liability balance due to a temporary difference at the beginning of 2022 related to P600,000 of excess depreciation. In December of 2022, a new income tax act is signed into law that lowers the corporate rate from 40% to 35%, effective January 1, 2024. If taxable amounts related to the temporary difference are scheduled to be reversed by P300,000 for both 2023 and 2024, Palmer should increase or decrease deferred tax liability by what amount?
Decrease by P30,000
Decrease by P15,000
Increase by P15,000
Increase by P30,000
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