33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expenses Excess depreciation for taxes Taxable income 4,500,000 6,000,000 (9,000,000) 1,500,000 The estimated litigation expense of P6,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. la
33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expenses Excess depreciation for taxes Taxable income 4,500,000 6,000,000 (9,000,000) 1,500,000 The estimated litigation expense of P6,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. la
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 4MC: Prior to and during 2019, Shadrach Company reported tax depreciation at an amount higher than the...
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Question
What is the amount of
a. 450,000
b. 800,000
c. 1,350,000
d. 1,800,000
What is the amount of current and non-current
a. 900,000 and 1,800,000
b. 0 and 900,000
c. 0 and 2,700,000
d. 0 and 2,250,000
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