NINE Company reported a pre-tax financial income of P8,584,950 for the year ended December 31, 2021. The following items were also noted: Insurance premium on life of an officer with NINE Company as the beneficiary Tax depreciation Financial depreciation Penalties due to late filing of income tax returns Dividend received Estimated litigation loss accrued for financial accounting purposes deductible when settled in the future 175,000 785,900 572,150 80,650 348,250 275,875 Estimated doubtful accounts expense Estimated tax payments 197,745 500,500 Income tax rate Cash received for rent of which P486,280 will be recognized as income by the company on the next year 35% 589,125

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Compute for the deferred tax asset

NINE Company reported a pre-tax financial income of P8,584,950 for the year ended December
31, 2021. The following items were also noted:
Insurance premium on life of an officer with NINE Company
as the beneficiary
Tax depreciation
Financial depreciation
175,000
785,900
572,150
Penalties due to late filing of income tax returns
80,650
Dividend received
348,250
Estimated litigation loss accrued for financial accounting
purposes deductible when settled in the future
Estimated doubtful accounts expense
275,875
197,745
Estimated tax payments
Income tax rate
Cash received for rent of which P486,280 will be recognized
as income by the company on the next year
500,500
35%
589,125
Transcribed Image Text:NINE Company reported a pre-tax financial income of P8,584,950 for the year ended December 31, 2021. The following items were also noted: Insurance premium on life of an officer with NINE Company as the beneficiary Tax depreciation Financial depreciation 175,000 785,900 572,150 Penalties due to late filing of income tax returns 80,650 Dividend received 348,250 Estimated litigation loss accrued for financial accounting purposes deductible when settled in the future Estimated doubtful accounts expense 275,875 197,745 Estimated tax payments Income tax rate Cash received for rent of which P486,280 will be recognized as income by the company on the next year 500,500 35% 589,125
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