NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021. The following items were also noted: Insurance premium on life of an officer with NINE Company as the beneficiary Tax depreciation Financial depreciation Penalties due to late filing of income tax returns Dividend received Estimated litigation loss accrued for financial accounting purposes deductible when settled in the future Estimated doubtful accounts expense Estimated tax payments P 175,000 785,900 572,150 80,650 348,250 275,875 197,745 500,500
NINE Company reported a pre-tax financial income of $8,584,950 for the year ended December 31, 2021. The following items were also noted: Insurance premium on life of an officer with NINE Company as the beneficiary Tax depreciation Financial depreciation Penalties due to late filing of income tax returns Dividend received Estimated litigation loss accrued for financial accounting purposes deductible when settled in the future Estimated doubtful accounts expense Estimated tax payments P 175,000 785,900 572,150 80,650 348,250 275,875 197,745 500,500
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 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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Required:
- Compute for the taxable income*
- Compute for the
deferred tax asset . - Compute for the net income after tax (round off to the nearest whole number)
![NINE Company reported a pre-tax financial income of P8,584,950 for the year ended December
31, 2021. The following items were also noted:
Insurance premium on life of an officer with NINE Company
as the beneficiary
Tax depreciation
Financial depreciation
Penalties due to late filing of income tax returns
175,000
785,900
572,150
80,650
Dividend received
348,250
Estimated litigation loss accrued for financial accounting
purposes deductible when settled in the future
Estimated doubtful accounts expense
275,875
197,745
Estimated tax payments
Income tax rate
Cash received for rent of which P486,280 will be recognized
as income by the company on the next year
500,500
35%
589,125](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d88f019-5ce0-48d9-bc8f-a92331efd0eb%2F48813680-d268-45dc-8c4a-75c75255c778%2Fs15s1t_processed.png&w=3840&q=75)
Transcribed Image Text:NINE Company reported a pre-tax financial income of P8,584,950 for the year ended December
31, 2021. The following items were also noted:
Insurance premium on life of an officer with NINE Company
as the beneficiary
Tax depreciation
Financial depreciation
Penalties due to late filing of income tax returns
175,000
785,900
572,150
80,650
Dividend received
348,250
Estimated litigation loss accrued for financial accounting
purposes deductible when settled in the future
Estimated doubtful accounts expense
275,875
197,745
Estimated tax payments
Income tax rate
Cash received for rent of which P486,280 will be recognized
as income by the company on the next year
500,500
35%
589,125
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