The reported pretax financial income of Mechado Company is P1,800,000 and current income tax rate is 30%. Assume the following differences between the financial income and taxable income for the year: 1. Fines paid for late payment of taxes, P15,500 2. Premiums paid on life insurance policy on officers, P200,000. Beneficiary named in the policies is Mechado Company. 3. Impairment loss recognized on goodwill, P90,000 4. Excess of tax depreciation over book depreciation, P30,000 5. Excess of warranty expense over actual expenditures, P27,000 6. Excess of estimated uncollectible accounts for financial reporting over the accounts actually written off for tax reporting. P12,000. 7. Rent collected in advance of period earned, P35,000. Taxable income is * .
The reported pretax financial income of Mechado Company is P1,800,000 and current income tax rate is 30%. Assume the following differences between the financial income and taxable income for the year: 1. Fines paid for late payment of taxes, P15,500 2. Premiums paid on life insurance policy on officers, P200,000. Beneficiary named in the policies is Mechado Company. 3. Impairment loss recognized on goodwill, P90,000 4. Excess of tax depreciation over book depreciation, P30,000 5. Excess of warranty expense over actual expenditures, P27,000 6. Excess of estimated uncollectible accounts for financial reporting over the accounts actually written off for tax reporting. P12,000. 7. Rent collected in advance of period earned, P35,000. Taxable income is * .
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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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