A farmer had the following data for the taxable year 2021: Sales of livestock and farm products purchased, P320,000 Sales of livestock and farm products raised, P540,000 Cost of livestock and farm products purchased and sold, P280,000 Cost of raising livestock and farm products, P380,000 Inventory of livestock and farm products, January 1, P220,000 Inventory of livestock and farm products, December 31, P226,000 Rental income of farm equipment, P210,000 How much is the net income using the accrual method?

Q: Taxpayer: Domestic Corporation (SME) It year of operation: 2017 Taxable period: 2021 Year 2017 2018…

A: SOLUTION GROSS INCOME  7000000 LESS DEDUCTION  (6000000) TAXABLE INCOME (A) 1000000…

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Q: P486,000

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Q: furnit r equi

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Q: Taxpayer: Domestic Corporation (SME) It year of operation: 2017 Taxable period: 2021 Year 2017 2018…

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.