Problem 5 (Accounting for Income Tax) Zeus Company reported pretax financial income of P3,000,000 for the year ended December 31, 2020. The taxable income was P4,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 30% and Zeus Company made estimated tax payment of P500,000 during the current year. Questions: 1. How much is the current tax expense in 2020? 2. How much is the total tax expense in 2020? 3. How much deferred tax asset or deferred tax liability should be presented in 2020 (Note: Indicate if DTA or DTL)?

Problem 5 (Accounting for Income Tax) Zeus Company reported pretax financial income of P3,000,000 for the year ended December 31, 2020. The taxable income was P4,000,000. The difference is due to rental received in advance. Rental income is taxable when received. The income tax rate is 30% and Zeus Company made estimated tax payment of P500,000 during the current year. Questions: 1. How much is the current tax expense in 2020? 2. How much is the total tax expense in 2020? 3. How much deferred tax asset or deferred tax liability should be presented in 2020 (Note: Indicate if DTA or DTL)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% 1. How much is the taxable income?A. 950,000B. 750,000C. 850,000D. 700,0002. How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000Thank you.
A company reported in the income statement for the current year P900,000 income before provision for income tax. Please consider the following information: Rent income received in advance P150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation P100,000Income tax rate 30% How much is the accounting income subject to tax?A. 900,000B. 750,000C. 700,000D. 225,000
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