question archive 1) For the year ended December 31, 2020, Theo Corporation reported pretax financial income of P6,000,000
1) For the year ended December 31, 2020, Theo Corporation reported pretax financial income of P6,000,000
Subject:AccountingPrice: Bought3
1) For the year ended December 31, 2020, Theo Corporation reported pretax financial income of P6,000,000. Its taxable income was P8,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 30% for all years and Theodore made estimated tax payment of P1,000,000. What should Theodore report as 2020 total income tax expense?
2.Den included the following items in pretax accounting income of 2020:• Litigation loss estimated at P75,000 which will become tax deductible when settled in the future.
• Goodwill impairment of P87,500 which will never be deductible for income tax expense.
• Revenue from an installment sale of P112,500, which will be recognized as part of taxable income as received over the next three years.
• Pretax financial income is P437,500. How much should be the pretax financial income subject to income tax?
3.In its 2020 income statement, Lob Corp. reported depreciation of P370,000 and interest revenue on municipal bonds of P70,000. Labs reported depreciation of P500,000 in its 2020 income tax return. The difference in depreciation is the only difference, and it will reverse equally over the next three years. Enacted tax rate for all years is 30%. What amount should be included in the deferred tax liability in Lab's December 31, 2020 balance sheet?
