Problem Pecorino Company had pretax financial income of P2,500,00 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received Tax depreciation in excess of financial statement amount Rent received in advance Corporate tax rate 1. What amount of permanent difference between book income and taxable income existed at year-end? a. 520,000 b. 360,000 c. 800,000 d. 280,000 $60,000 160.000 250,000 30% 2. What amount of current tax expense should be reported? a. 786,000 b. 510,000 c. 750,000 d. 678,000 3. What amount of income tax payable should be reported? a. 498,000 b. 606,000 c. 330,000 d. 570,000 4. What amount of total tax expense should be reported? a. 714,000 b. 726,000 c. 642,000 d. 594,000
Problem Pecorino Company had pretax financial income of P2,500,00 in the current year. The entity made corporate estimated tax payment in the amount of 180,000 during the current year. To compute the provision for income tax, the following information was provided: Interest income received Tax depreciation in excess of financial statement amount Rent received in advance Corporate tax rate 1. What amount of permanent difference between book income and taxable income existed at year-end? a. 520,000 b. 360,000 c. 800,000 d. 280,000 $60,000 160.000 250,000 30% 2. What amount of current tax expense should be reported? a. 786,000 b. 510,000 c. 750,000 d. 678,000 3. What amount of income tax payable should be reported? a. 498,000 b. 606,000 c. 330,000 d. 570,000 4. What amount of total tax expense should be reported? a. 714,000 b. 726,000 c. 642,000 d. 594,000
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 47P
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