7. The following differences between financial and taxable income were reported by Dimaano Corporation for the current year: Excess of tax depreciation over book depreciation 60,000 Interest revenue on government bonds 9,000 Excess of estimated warranty expense over actual expenditures 54,000 Unearned rent received 12,000 Fines paid 30,000 Excess of income reported under percentage of completion accounting for financial reporting over completed contract accounting used for tax reporting 45,000 Interest on indebtedness incurred to purchase tax-exempt securities 3,000 Unrealized losses on equity investments at fair value through profit or loss recognized for financial reporting 18,000 Additional information: -The company had pretax accounting income of P 900,000 for the current year before considering the items listed above -The company does not have any temporary difference at the beginning of the year. -There were no income tax payments made during the year -Income tax rate is 30%. How much is the current tax payable?
7. The following differences between financial and taxable income were reported by Dimaano Corporation for the current year: Excess of tax depreciation over book depreciation 60,000 Interest revenue on government bonds 9,000 Excess of estimated warranty expense over actual expenditures 54,000 Unearned rent received 12,000 Fines paid 30,000 Excess of income reported under percentage of completion accounting for financial reporting over completed contract accounting used for tax reporting 45,000 Interest on indebtedness incurred to purchase tax-exempt securities 3,000 Unrealized losses on equity investments at fair value through profit or loss recognized for financial reporting 18,000 Additional information: -The company had pretax accounting income of P 900,000 for the current year before considering the items listed above -The company does not have any temporary difference at the beginning of the year. -There were no income tax payments made during the year -Income tax rate is 30%. How much is the current tax payable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
7. The following differences between financial and taxable income were reported by Dimaano Corporation for the current year:
Excess of tax |
60,000 |
Interest revenue on government bonds | 9,000 |
Excess of estimated warranty expense over actual expenditures | 54,000 |
Unearned rent received | 12,000 |
Fines paid | 30,000 |
Excess of income reported under percentage of completion |
45,000 |
Interest on indebtedness incurred to purchase tax-exempt securities | 3,000 |
Unrealized losses on equity investments at fair value through profit or loss recognized for financial reporting | 18,000 |
Additional information:
-The company had pretax accounting income of P 900,000 for the current year before considering the items listed above
-The company does not have any temporary difference at the beginning of the year.
-There were no income tax payments made during the year
-Income tax rate is 30%.
How much is the current tax payable?
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