At year-end of the first year of operations, Liezl Company had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The income tax rate is 30%. What amount should be reported as income tax payable at year-end? 6,600,000 O 5,400,000 O 5,925,000 6,000,000
At year-end of the first year of operations, Liezl Company had taxable temporary differences totaling P3,000,000. Of this total, P500,000 relates to current items. The entity also had deductible temporary differences totaling P1,000,000, P250,000 of which relates to current items. Pretax financial income for the current year was P20,000,000. The income tax rate is 30%. What amount should be reported as income tax payable at year-end? 6,600,000 O 5,400,000 O 5,925,000 6,000,000
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
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19RE
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