Miguel Company reported a retained earnings balance of P4,000,000 at January 1, 2021. In August 2021, Miguel Company determine that insurance premiums of P900,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2019. The income tax rate is 30%. What should be reported as corrected retained earnings on January 1, 2021?
Miguel Company reported a retained earnings balance of P4,000,000 at January 1, 2021. In August 2021, Miguel Company determine that insurance premiums of P900,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2019. The income tax rate is 30%. What should be reported as corrected retained earnings on January 1, 2021?
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 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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