XYZ’s financial income is P1,800,000 before provision of income tax. The following differences have been noted between taxable and financial income: · Excess of warranty expense over actual warranty expenditures: P27,000 · Premiums paid on life insurance policy on officers where XYZ is the beneficiary, P200,000. · Rent collected in advance for period earned: P35,000 · Penalties paid for late payment of taxes, P15,500 · Excess of tax depreciation over book depreciation: P30,000 · Excess of doubtful accounts expense for financial reporting over the actual write-offs for tax reporting: P12,000 · Impairment of goodwill: P90,000 Current income tax rate is 30%. How much is the taxable income? a. 2,149,500 b. 2,105,000 c. 2,061,000 d. 2,079,000
XYZ’s financial income is P1,800,000 before provision of income tax. The following differences have been noted between taxable and financial income: · Excess of warranty expense over actual warranty expenditures: P27,000 · Premiums paid on life insurance policy on officers where XYZ is the beneficiary, P200,000. · Rent collected in advance for period earned: P35,000 · Penalties paid for late payment of taxes, P15,500 · Excess of tax depreciation over book depreciation: P30,000 · Excess of doubtful accounts expense for financial reporting over the actual write-offs for tax reporting: P12,000 · Impairment of goodwill: P90,000 Current income tax rate is 30%. How much is the taxable income? a. 2,149,500 b. 2,105,000 c. 2,061,000 d. 2,079,000
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 20CE
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XYZ’s financial income is P1,800,000 before provision of income tax. The following differences have been noted between taxable and financial income:
· Excess of warranty expense over actual warranty expenditures: P27,000
· Premiums paid on life insurance policy on officers where XYZ is the beneficiary, P200,000.
· Rent collected in advance for period earned: P35,000
· Penalties paid for late payment of taxes, P15,500
· Excess of taxdepreciation over book depreciation: P30,000
· Excess of doubtful accounts expense for financial reporting over the actual write-offs for tax reporting: P12,000
· Impairment ofgoodwill : P90,000
Current income tax rate is 30%. How much is the taxable income?
· Excess of warranty expense over actual warranty expenditures: P27,000
· Premiums paid on life insurance policy on officers where XYZ is the beneficiary, P200,000.
· Rent collected in advance for period earned: P35,000
· Penalties paid for late payment of taxes, P15,500
· Excess of tax
· Excess of doubtful accounts expense for financial reporting over the actual write-offs for tax reporting: P12,000
· Impairment of
Current income tax rate is 30%. How much is the taxable income?
a. 2,149,500
b. 2,105,000
c. 2,061,000
d. 2,079,000
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