Question
ABC Company reported pretax financial income of P2,000,000 for the year ended december 31 2020 . The taxable income was P1,500,000. The difference is due
ABC Company reported pretax financial income of P2,000,000 for the year ended december 31 2020 . The taxable income was P1,500,000.
The difference is due to accelerated depreciation for income tax purposes .
The income tax rate is 30% and ABC Company made estimated tax payment of P200,000 during the current year.
Required:
A. Prepare journal entries for 2020.
B. Compute the total income tax expense for 2020.
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Core Concepts Of Accounting Information Systems
Authors: Mark G. Simkin, Carolyn A. Strand Norman, Scott Paquette
1st Canadian Edition
1118738101, 978-1118738108
