BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000 Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. Question: What is the amount of taxable temporary difference? What is the current tax expense?
BDO Company reported the following on December 31, 2015: Income before tax for accounting purposes P12,000,000; Rent expense for financial accounting purposes is P2,000,000 Rent expense for tax purposes is P1,000,000; Tax depreciation is P3,200,000 Accounting depreciation is P1,700,000; Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%. Question: What is the amount of taxable temporary difference? What is the current tax expense?
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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BDO Company reported the following on December 31, 2015:
Income before tax for accounting purposes P12,000,000;
Rent expense for financial accounting purposes is P2,000,000
Rent expense for tax purposes is P1,000,000;
Tax
Accounting depreciation is P1,700,000;
Loss on a case incurred but not yet paid so tax-deductible in the future is P700,000. The tax rate is 30%.
Question:
What is the amount of taxable temporary difference?
What is the current tax expense?
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