FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What is the total tax expense?

A. 300,000

B. 2,550,000

C. 600,000

D. 750,000

Artwork Inc.'s financial reporting year ends June 30 and it reports quarterly. This means that the financial
reporting is from July of one year to June 30 of next year. The tax year ends December 31.
The entity reported the following income before tax for the financial year from July 1, 2020 to June 30,
2021:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
July 1, 2020 to September 30, 2020
October 1, 2020 to December 31, 2020
January 1, 2021 to March 31, 2021
April 1, 202 to June 30, 2021
P1,000,000
2,000,000
3,000,000
4,000,000
The effective income tax rate is 30% for 2020 and 25% for 2021. What is the total tax expense?
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Transcribed Image Text:Artwork Inc.'s financial reporting year ends June 30 and it reports quarterly. This means that the financial reporting is from July of one year to June 30 of next year. The tax year ends December 31. The entity reported the following income before tax for the financial year from July 1, 2020 to June 30, 2021: First Quarter Second Quarter Third Quarter Fourth Quarter July 1, 2020 to September 30, 2020 October 1, 2020 to December 31, 2020 January 1, 2021 to March 31, 2021 April 1, 202 to June 30, 2021 P1,000,000 2,000,000 3,000,000 4,000,000 The effective income tax rate is 30% for 2020 and 25% for 2021. What is the total tax expense?
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