For the year ended December 31, 2021, THREE Company reported pre-tax financial income of P7,500,000. The taxable income was P6,500,000. The difference is due to accelerated depreciation for income tax purposed. The income tax rate is 30% and the entity made estimated tax payment of P900,000 during the current year.
For the year ended December 31, 2021, THREE Company reported pre-tax financial income of P7,500,000. The taxable income was P6,500,000. The difference is due to accelerated depreciation for income tax purposed. The income tax rate is 30% and the entity made estimated tax payment of P900,000 during the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What amount should be reported as current tax expense for the current year?
a. ₱ 1,350,000
b. ₱ 2,250,000
c. ₱ 1,950,000
d. ₱ 1,050,000
2. What amount should be reported as total income tax expense?
a. ₱ 2,250,000
b. ₱ 1,050,000
c. ₱ 1,350,000
d. ₱ 1,950,000
3. What amount of income tax payable should be presented at year-end?
a. ₱ 1,050,000
b. ₱ 2,250,000
c. ₱ 1,350,000
d. ₱ 1,950,000
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