ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 billion for the year 20X1, its first year of operations. ABC has a current tax rate of 24% and a future enacted tax rate of 21%. The following differences between financial and taxable income were reported by ABC for the current year (all numbers in millions): 1. Excess of tax depreciation over book depreciation 11,500 II. Interest revenue on municipal bonds 1,600 II. Estimated warranty expense over actual expenditures IV. Fines paid 9,000 6,400 Unrealized gains on marketable securities recognized for V. financial reporting 3,000

ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 billion for the year 20X1, its first year of operations. ABC has a current tax rate of 24% and a future enacted tax rate of 21%. The following differences between financial and taxable income were reported by ABC for the current year (all numbers in millions): 1. Excess of tax depreciation over book depreciation 11,500 II. Interest revenue on municipal bonds 1,600 II. Estimated warranty expense over actual expenditures IV. Fines paid 9,000 6,400 Unrealized gains on marketable securities recognized for V. financial reporting 3,000

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 18P

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ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 billion for the year 20X1, its first year of operations. ABC has a current tax rate of 24% and a future enacted tax rate of 21%. The following differences between financial and taxable income were reported by ABC for the current year (all numbers in millions): 1. Excess of tax depreciation over book depreciation 11,500 II. Interest revenue on municipal bonds 1,600 II. Estimated warranty expense over actual expenditures 9,000 IV. Fines paid 6,400 Unrealized gains on marketable securities recognized for V. financial reporting 3,000 Calculate ABC's taxable income
1. Pine Corporation’s books showed pretax income of P600,000 for the year ended December 31, 20x1. In the computation of federal income taxes, the following data were considered: Gain on involuntary conversion (expropriation) P350,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 50,000 Estimated tax payments during 20x1 70,000 Income tax rate 30% What amount should Pine report as its current income tax liability on its December 31, 20x1, balance sheet?
ABC Company (ABC), a manufacturer of hybrid engine vehicles, had pretax financial income of P30 billion for the year 20X1, its first year of operations. ABC has a current tax rate of 24% and a future enacted tax rate of 21%. The following differences between financial and taxable income were reported by ABC for the current year (all numbers in millions): 1. Excess of tax depreciation over book depreciation 11,500 II. Interest revenue on municipal bonds 1,600 III. Estimated warranty expense over actual expenditures 9,000 IV. Fines paid 6,400 Unrealized gains on marketable securities recognized for V. financial reporting 3,000 Calculate ABC's deferred tax liability
Honesty Company reported pre-tax financial income of P400,000 for 2022. In the computation of income taxes, the following data were gathered: Non-taxable gain - P175,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes - P25,000 Tax payment made during 2022 - P27,500 Enacted tax rate - 35% What amount shall be reported as current tax liability?
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Munoz Corp.'s books showed pretax financial income of €1,500,000 for the year ended December 31, 2022. In the computation of income taxes, the following data were considered (tax rate 30%) Gain on an involuntary conversion(Munoz has elected to replace the property within the statutory period using total proceeds.) 650,000 Depreciation deducted for tax purposes in excess of depreciation deducted for book purposes 100,000 Estimated tax payments, 2022 125,000 What amount should Munoz report as its current income tax liability on its December 31, 2022 statement of financial position?