EL Co. reported net income for the current year 2021 at P560,000 before provision of income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - 36,500 • Interest income received - 80,500 • Rent received in advance - 175,000 • Dividend income - 91,700 • Estimated tax payment in the current year - 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - 48,300 • Tax penalties due to late filing on tax return - 20,000 • Corporate tax rate - 30% Required: How much is the taxable income for the year? How much is the current tax expense for the year? What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position? EL Co. reported net income for the current year 2021 at P560,000 before provision of income tax during the year. To compute the provision for income tax, the following data are provided: • Tax depreciation in excess of financial statement amount - 36,500 • Interest income received - 80,500 • Rent received in advance - 175,000 • Dividend income - 91,700 • Estimated tax payment in the current year - 65,000 • Provision for bad debts not yet recognized for tax purposes on the current year - 48,300 • Tax penalties due to late filing on tax return - 20,000 • Corporate tax rate - 30% Required: How much is the taxable income for the year? How much is the current tax expense for the year? What is the total deferred tax asset to be presented in the 2021 Statement of Financial Position?
Expert Answer:
Answer rating: 100% (QA)
ANSWER Step 1 Particulars Amount Accounting income per book P560000 Perman... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these accounting questions
-
Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The CFO of Last Things Computing, Inc. (LTC) prepared the following balance sheet and statement of net income for the year ended December 31, 2016. Last Things Computing, Inc. Balance Sheet At...
-
Pacific Company sells electronic test equipment that it acquires from a foreign source. During the year 2014, the inventory records reflected the following: Inventory is valued at cost using the LIFO...
-
Aqua Clean, Inc., operates a pool cleaning service. Aqua Clean wants to compare this months results with those for last month, which is believed to be a typical base period. Assume that the following...
-
The number of strawberry milkshakes that are sold at a local diner in a given day has an average of 97.5 per day and standard deviation of 7.8. In a given 30-day month, what is the approximate...
-
Compute direct materials variance (Learning Objective 4) The following direct materials variance computations are incomplete: Fill in the missing values and identify the flexible budget variance as...
-
Knife Edge Company purchased tool sharpening equipment on July 1, 2010, for $16,200. The equipment was expected to have a useful life of three years and a residual value of $900. Instruction...
-
Perform the indicated operation. Give your answer in polar form in the first box and rectangular form in the second box. 7 TT + i sin + isin 24 The polar form is The rectangular form is Question...
-
The motorcyclist travels with constant velocity along a straight, horizontal, banked road. If he aligns his bike so that the tires are perpendicular to the road at A, determine the frictional force...
-
Evaluate the integral using the Trigonometric Substitution method Do this problem in the exact way it was shown in lecture x 81 x 3 dx
-
Worldcom is investigating raising equity financing. What percentage of total funds raised do direct expense represent if to market stock the issuer incurs $1 million in other expenses to sell 3...
-
es eEgg is considering the purchase of a new distributed network computer system to help handle its warehouse Inventories. The system costs $55,000 to purchase and Install and $32,000 to operate each...
-
Identify one of the main advantages and two behavioural implications of the use of the following transfer pricing methods: a. Full Cost Based Transfer Price b. Negotiation Based Transfer Price...
-
In fact, Unit B1 found a potential new external customer to whom it would have the opportunity to sell 500 units of a new part, called P2, at a selling price of 1,220. These sales would be in...
-
Varcoe Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 31,000 customers, but actually served 26,000 customers. Revenue is $3.82...
-
18-5 (Algo) A small town with one hospital has 3 ambulances to supply ambulance service. Requests for ambulances during nonholiday weekends average 0.60 per hour and tend to be Poisson-distrib
-
What is removed during each of the three stages of wastewater treatment: primary, secondary, and tertiary? During which state would you expect items to be recovered that were accidentally flushed,...
-
When using the double- declining balance method, will the ending net book value of a plant asset equal the planned scrap value? Explain.
-
Assume that the Yawyag Corporation in E11- 8 is an IFRS reporter and answer the following: Required a. Compute the weighted- average accumulated expenditures for the current year. b. Compute the...
-
When preparing its financial statements at the end of 2015, Thorn Retail Inc. dis-covered an error in accounting for inventory. When Thorn started to purchase merchandise from a new supplier, it...
-
(Trading volume and return) A well-known finance professor published a paper in which he argued that due to the high volume of stock trade in the Internet, he expects stock returns to decline in...
-
(Risk and return) Can you think of a risk-based explanation for the following finding? Over the last 40 years, small stocksdefined as shares of firms with a low market valuehad higher returns than...
-
(Compute average return and sigma) Go to the Principles of Finance with Excel companion website for Chapter 7, where youll find a template with data on annual stock prices for Kellogg and Ford for...
Study smarter with the SolutionInn App