SWFT Corp Partner Estates Trusts
42nd Edition
ISBN: 9780357161548
Author: Raabe
Publisher: Cengage
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Please put all of the necessary information and computations for better understanding. Thanks ?
Transcribed Image Text:9. Stone Co. began operations in 20x1 and reported P225,000 in income before
income taxes for the year. Stone's 20x1 tax depreciation exceeded its book depreciation by
P25,000. Stone had nondeductible book expenses of P10,000 related to permanent
differences. Stone's tax rate for 20x1 was 40%, and the enacted rate for years after 20x1 is
35%.
In its December 31, 20x1, balance sheet, what amount of deferred income tax liability should
Stone report?
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